A cosmetic tax reform

The Finance Ministry has withdrawn from its plans to introduce one common income tax for entrepreneurs. It will, however, amend the current PIT and CIT bills. In accordance with previous announcements, there will be no changes to the current 19%, 30%, and 40% tax levels, apart from the new 17% tax for low earners. According to unofficial information, all tax reliefs will be suspended. The Finance Ministry also plans to introduce a capital gains tax of 19% by January 1, 2004, but it is aware that it will be only be able to do so in mid 2004, when brokerage houses will be technically ready to collect the taxes. A fall of tax from the current 27% to 19% is expected for entrepreneurs, who at the same time are legal entities. The Ministry is also preparing an income tax for the agricultural sector, which will be introduced not earlier than in 2005. (Rzeczpospolita, May 17-18, p. A1) A.K.