Fin Min offers 19% corporate bracket, but elimination of all tax breaks

The Finance Ministry will stick with its goal to keep next year's budget deficit around zł. 40 billion (3.9% of GDP according to EU calculation methods), despite a plan to more radically cut taxes for firms, Deputy Finance Minister Halina Wasilewska-Trenkner told reporters on the sidelines of a financial seminar. Finance Minister Grzegorz Kołodko proposed to cut the tax rate to 19% from the current 27%, while eliminating all tax breaks, in a bid to gain wider acceptance for his fiscal reform plans within the government. Previously Kołodko sought to cut taxes to 24%. "The new proposal to cut the corporate tax rate to 19% would cost the budget more than zł. 4 billion," Wasilewska-Trenkner said. (Reuters) A.Z.