Finance chiefs shoot zł.400 million hole in budget with pre-election fuel tax cuts

According to Finance Minister Mirosław Gronicki, this should lead to the lowering petrol prices by around zł.0.30 per liter. "The revenues to the budget this year due to this decision will be lowered by around zł.400 million," added Gronicki. Today the government is to discuss the assumptions of the 2006 budget. Gronicki proposes an increase in expenditures of zł.221.8 billion. The proposals would see revenues increase to zł.189.2 billion, while the deficit would stand at zł.32.575 billion. It would have been lower if the amendment to the bill on VAT returns for construction materials had been accepted. Gronicki continued to say that excise tax will not increase in 2006, if the revenues in Q2 of next year are on schedule. The Finance Ministry also claims that an increase in the excise tax on alcohol will not be introduced while the 10% excise on cosmetics will be completely withdrawn. (Puls Biznesu, pp. 1, 4; Rzeczpospolita, p. B1) A.K.