Extra profit tax, price cap, supplier challenges – Zsolt Pálinkás, CEO of Tesco, spoke about the future

By: Trademagazin Date: 2023. 03. 29. 12:37

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“We have never had extra profit. If we start from the fact that the industry has an average profitability of 2-5 percent, and this is accompanied by a turnover-based deduction of 4.1 percent, then it can be deduced how much of a loss the extra profit tax causes in terms of total profit At the same time, we always comply with the laws, so of course we also pay this additional tax burden,” said Zsolt Pálinkás in a recent interview with Index.

Pálinkás Zsolt
vezérigazgató
Tesco-Global

When asked whether Tesco feels extra care from the government because it turned to the Luxembourg court in connection with the 2010 and 2012 retail tax, he said:

“The entire extra profit tax and most of the retail taxes are borne by the seven foreign-owned supermarket chains, about 80 percent of the total burden. However, the extra profit tax already had an end date when it was introduced, and we are counting on that. We are not looking for loopholes, but until then, the even more efficient we are focusing on operation, hoping that the extra profit tax will be phased out at the announced date”.

The CEO spoke to Index, among other things

about government measures, such as the price cap and the extra profit tax,
on inflation and pricing practices,
on border shopping tourism,
about the risks of the exchange rate difference, and therefore whether we should be wary of cheap dumped imports,
how does it define itself in the domestic retail market,
what are their plans with the domestic chain of stores.

He considered it important to state that Tesco is not for sale and is not going anywhere.