Cabinet to discuss VAT increases as reports indicate introduction delay

Proposed VAT increases are now expected to come into force on April 1, 2002, and not, as the Finance Ministry had initially suggested, on January 1. According to sources quoted by Rzeczpospolita, the government has already accepted increases in VAT on handicraft furniture, from 3% to 22%, toys, from 7% to 22%, and tires, also from 7% to 22%. VAT on construction services and materials, as well as apartments, will also be increased. The Cabinet will meet today to discuss the changes in VAT, focusing in particular on the construction sector. (Rzeczpospolita, p. B1) M.T.K.