Cabinet confirms zl.40 billion deficit for 2002 and approves 5% import tax

The draft budget for 2002, approved by the Cabinet yesterday, envisages the introduction of a 5% import tax. According to Finance Minister Hanna W asilewska-Trenkner, the zl.40 billion deficit approved previously by the government would not change. The new 5% import tax would increase budget revenues by zl.10 billion, making it unnecessary to raise VAT to 24%, as had previously been proposed. "This is a very difficult budget. We had to make tough choices," Wasilewska-Trenkner said during a news conference. The Democratic Left Alliance (SLD) has promised, once it has formed a gove rnment, to amend the budget, although it has said it will use the Cabinet draft as a starting point. (Gazeta Wyborcza, Sept. 28, 29 p. 2; Prawo i Gospodarka, p. 1; Reuters) P.W.