Cabinet approves income tax changes designed to raise extra zl.4.2 billion

Under changes to the 2002 Personal Income Tax (PIT) bill that were approved by the Cabinet on Friday, a new 20% tax will be introduced on personal income from savings and treasuries. In addition, a two-year freeze will be imposed on tax thresholds, and although all but one of the existing housing tax breaks will be eliminated, mortgage borrowers will benefit from a new tax relief measure. The Finance Ministry estimates that as a result of the changes in the PIT bill, the budget will earn an extra zl.4.2 billion next year. The draft will be forwarded to the Sejm on Monday. (Gazeta Wyborcza, Oct. 27-28, pp. 1, 25: Reuters) P.J.