Finance Min. says VAT rejection blamed for throwing budget into disarray

The Finance Ministry estimates the effects of the Sejm rejection of the government's amendment to the value-added tax (VAT) at zl.1.5 billion and says it was one of the main reasons for postponing the constitutionally set date of forwarding the budget to Sejm from Sept. 15 to Nov. 15. In addition to this, the passing of the municipal government bill will cost the budget zl. 240 million and the postponement of the vote on the bill regulating the work week could influence next year's economic growth, says the Ministry. Currently Sejm is discussing changes to the personal income tax (PIT) bill and duty code. The new deadline will enable the Finance Ministry to thoroughly evaluate next year's budget. According to Miroslaw Gronicki from the Adam Smith Center, it is likely the delay was the effect of technical problems within the government. (Prawo i Gospodarka, page 1)