24% VAT rate proposed for 2002 in draft measures to tackle 40mln deficit

According to Rzeczpospolita daily, next year's draft budget proposal, which the Finance Ministry is due to deliver to the Cabinet today, is to introduce a 2% increase in VAT on goods and services, as a measure to alleviate 2002's projected budget deficit of zl. 40 billion. The proposed import tax will not be introduced, but according to analysts, the planned VAT increase would mean an extra zl. 3 to 4 billion to the anticipated budgetary income of around zl. 50 billion. According to the daily, the Finance Ministry drafted the bill under an assumption that in 2002 the GDP will increase by 1.7%. (Rzeczpospolita, B1) P.J.