19% Coporate Income Tax looks set to be given the green light

During informal government meetings in Klarysew, it was decided to introduce a 19% corporate income tax. According to the Economy and Labor Minister Jerzy Hausner, it was not the final decision, as the Finance Minister was asked to prepare a budget version, which would calculate the effects of introducing the changes. Up to now, the Ministry claimed that introducing the 19% CIT, would decrease budget revenues by zl. 2.2 billion, but now it is only looking at zl. 800 million. This was due to accepting employers and trade unions' proposal of not increasing the amount of free of taxes. Hausner said that the changes in PIT regulations would not allow taxpayers working in companies to employ themselves and thus pay lower taxes. "As a general rule, we decided that a 19% tax rate among PIT payers would only apply to those who were paying corporate taxes in 2003," explained Hausner. (Parkiet, September 6-8, p. 1) M.M.