Closing the Special Economic Zones may cost Treasury zl. 4 billion

Yesterday, Jacek Piechota, the Economy Minister announced that the Special Economic Zones (SSE) will certainly continue to function, but in a form that is in accordance with the law on subsidizing investments. The provisions of the law allows public aid of up to 65% of the value of investments for small and medium size enterprises and up to 50% for large companies. The majority of companies which had started to operate in the zones before January 1, 2002, obtained the right to be exempt from taxes for 10 years and then to pay only 50% of taxation for another 10 years. This is opposed by the European Union, which disagreed with the transitory period for zones. The the government has prepared several options to pay damages to investors who could lose the right to the tax holidays. According to Jacek Piechota this might cost the budget up to zl. 4 billion. (Prawo i Gospodarka, p. 3) P.W