2004 budget envisages changes to various excise duties

In the 2004 budget draft, which has been presented to various social groups for consultation, the government has included an increase in the excise tax on spirits, fuels, tobacco products, as well as wine and beer. They will be increased by on average more than 1% year-on-year. The government has also forecasted that budget revenues from excise tax would amount to zł. 34.61 billion in 2004, against the current zł. 34 billion. This means that in relation to GDP, the tax would decrease to 4%. "In the projections for 2004 excise revenues, we have taken into account the effect of opening the borders with the EU, which will be rather negative for our budget income," stated the draft. In related news, the structure of budget expenditures will change in 2004. The biggest share, of 48.8%, will be spent on various subsidies. According to the budget draft, Poland should enter Exchange Rate Mechanism (ERM-2) in 2005-2006, which means that the Euro would replace złoty two years afterwards. (Gazeta Wyborcza, p. 16; www.onet.pl) M.M.