Capital market players criticize the government's capital gains tax proposal

Players on the capital markets have protested against a government proposal to introduce a 5% capital gains tax as of January 2003. Krzysztof Grabowski of the Brokers and Consultants Associations (ZMiD) says his institution would fight against the bill which will be tabled in Sejm next week. Joanna Bilewicz of the Securities Insurers Association (SEG) says the current draft bill is faulty and requires urgent amendments. The draft calls on brokerage houses to be the intermediaries in remitting the capital gain taxes on a monthly basis to the Treasury. Analysts are afraid brokerage houses, in an effort to cover the cost, could be forced to raise the commission they charge investors for their service, in turn acting as a disincentive for investors to enter the Polish market. (Parkiet, page 1)