Accession fears and VAT changes mean Christmas comes early for car leasers

Furthermore, until last Monday, companies could have purchased cars and register them as trucks, and that way avoided paying VAT, thus adding to the April rush. "We do not know the precise value of contracts signed this month, as it is not over yet, but it will come to that [of the figure] for the first three months of 2004, around zł.51 million," said Marek Forster, president of Volkswagen Leasing Polska. Indeed, Marzena Kowalska, a spokesperson for BRE Leasing, estimated that the value of contracts singed this month will be 50% higher than for the same period last year. A similar situation has been experienced by the building materials sector, where company representatives fear that EU accession will mean an end to the high levels of demand for their goods, for as of May 1, the VAT rate on these products will rise from 7% to 22%. The sector therefore benefited from purchases that will be kept in reserve for later use. (Puls Biznesu, pp. 1, 5) A.K.