Brewers and auto makers oppose excise tax hikes in gov't budget for 2001

The government's draft budget for 2001 strives to maintain the deficit at the level of 1.6% of GDP, and to accomplish this the Ministry of Finance has increased excise duties. Entrepreneurs argue that higher excise duties will cause sales levels to decline in some sectors, and brewers have been among the most vocal thus far. According to Andrzej Dlugosz, a spokesman for the brewery sector, such an excise duty increase is unacceptable for the industry since the cost will be borne by consumers and beer sales will thus drop significantly. They likewise argue that subsequent reduced consumption will not be sufficient to provide the zl.1.99 billion revenue for the budget anticipated by the government. Representatives of the auto industry are likewise skeptical about the news that there will be no further increase in the excise duty for cars in the year 2001. Andrzej Pulwarski, vice president of KIA Motors Polska, thinks that in case of revenue shortfalls the government will not spare the auto industry from excise duty increases. (Puls Biznesu, p.8)