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Ministers appeal to Senators to overturn 50% Income Tax Rate

The Senate yesterday was the scene of heated discussion concerning overturning the 50% income tax rate (PIT) which was recently introduced.

Finance Minister Miroslaw Gronicki strongly objects to the hike.

"The government is against this rate. It is not defending the richest, but there is a very large chance that many of the wealthiest will avoid paying the highest rate, and then the budget will lose out. In such a situation the government would have to even cover the losses," said Gronicki.

Deputy Finance Minister Jaroslaw Neneman presented the latest financial calculations concerning the introduction of the 50% PIT rate.

"In 2003 the new bracket would have encompassed around 4,000 people. If they remained as full time employees, the budget would increase its revenues by around zl.240 million. But this is a statistical assumption. We are afraid that many would avoid paying the tax by registering as self-employed and so only pay a 19% flat rate tax," explained Neneman.

(WBJ 04.xi.04)

 
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