Excess excise driving new-car buyers out of the market

Although Poles have bought about 230,000 cars so far this year, this is 11.2% less than at the same time last year, with sales down 26% on last year. Analysts say record sales of cars in December 1999 will not make up for the losses manufactures are now facing. December's sales figures were boosted by consumers' advance knowledge of planned increases in excise duty on cars in 2000. The Finance Ministry says Treasury revenue from excise duty on cars has increased. However, this raises the question of how much revenue the Treasury will get if 29,000 fewer cars have been bought, as this means 29,000 fewer people are paying Value-Added Tax (VAT) on new cars. (Prawo i Gospodarka, page 3) A.D.