Deputy Econ Min Szlazak resigns as Balcerowicz gets tough on coal sector

Deputy Economy Minister Jan Szlazak, responsible for restructuring Poland's coal mining sector, resigned yesterday as tax offices are getting tough with managers of coal mining conglomerates who do not pay taxes. "I've had enough. First the whole government agrees to losses in the mining sector in order to give it a chance for the future and then one minister makes this impossible," said Szlazak, referring to Finance Minister Leszek Balcerowicz, who ordered tax offices to conduct stricter audits in coal conglomerates. "Already 41 coal managers are being prosecuted for breach of tax law [and could face up to two years in prison and zl. 300,000 in fines]. This makes their work impossible," said Szlazak. "We can't have holy cows," retorted deputy Finance Minister responsible for the coal sector, Rafal Zagorny. In the first quarter of 2000, coal mines paid only 49.2% of social insurance premiums, 83.9% of personal income taxes and just 41.4% of VAT. Because of the dramatic condition of coal mines, their managers are often faced with the choice of paying premiums and taxes or paying salaries to their employees. (Gazeta Wyborcza, page 1, Reuters) T.J.