Auto dealers get revved up
The country's car companies have begun lobbying the government to reform the auto-taxation system following its second summit to discuss the plight of the industry.
The meeting was hosted by the ZM SOIS industry association and attracted leading players, including CEOs, management figures, and industry representatives who have resolved to act as one in view of a continuing decline in new car sales. The latest estimates from the Samar auto-market research firm suggest that just 21,000 new vehicles were sold in Poland in March - nearly 50 percent less than March 2004.
While sales may have been boosted in the run-up to EU accession by concerns over tax increases, analysts believe that potential customers are currently being put off by both controversial VAT proposals and uncertainty of when and if they might be introduced.
"That the new tax law is not favorable to the car industry is one thing. For a long time now we have been saying that a comprehensive plan is needed for the whole industry to achieve growth," the ZM SOIS's Jakub Farys said.
The organization has submitted proposals to the government to adjust the draft VAT system. They are calling for businesses to be allowed to reclaim 50 percent of the tax on vehicles below 3.5 tonnes.
"We are ready to start talks with the government at any time to discuss ways to improve the new VAT legislation," said ZM SOIS managing director, Przymyslaw Rajewski, adding that car companies believe the new changes are likely to deal a further blow to corporate sales.
Under the draft law, corporate buyers purchasing cars for business-related applications will be allowed to claim back 60 percent of the tax they have paid, but no more than zł.6,000.
The new rules are expected to come into force on September 1.
The meeting was hosted by the ZM SOIS industry association and attracted leading players, including CEOs, management figures, and industry representatives who have resolved to act as one in view of a continuing decline in new car sales. The latest estimates from the Samar auto-market research firm suggest that just 21,000 new vehicles were sold in Poland in March - nearly 50 percent less than March 2004.
While sales may have been boosted in the run-up to EU accession by concerns over tax increases, analysts believe that potential customers are currently being put off by both controversial VAT proposals and uncertainty of when and if they might be introduced.
"That the new tax law is not favorable to the car industry is one thing. For a long time now we have been saying that a comprehensive plan is needed for the whole industry to achieve growth," the ZM SOIS's Jakub Farys said.
The organization has submitted proposals to the government to adjust the draft VAT system. They are calling for businesses to be allowed to reclaim 50 percent of the tax on vehicles below 3.5 tonnes.
"We are ready to start talks with the government at any time to discuss ways to improve the new VAT legislation," said ZM SOIS managing director, Przymyslaw Rajewski, adding that car companies believe the new changes are likely to deal a further blow to corporate sales.
Under the draft law, corporate buyers purchasing cars for business-related applications will be allowed to claim back 60 percent of the tax they have paid, but no more than zł.6,000.
The new rules are expected to come into force on September 1.
