Finance Minister comments on possible changes to VAT

He declared that his ministry supports the one under which the basic VAT rate would be 18% and would cover all goods except for food, where a reduced rate of 8% would apply. A 0% rate would continue to be applied to exports. "Such a solution would be neutral for budget revenues and would facilitate a significant reduction in administrative costs," said Gronicki. Businesses have generally welcomed the idea, but fear a general increase in the level of taxation. "We have one of the highest standard VAT rates in Europe and at the same time, we are a neighbor of Germany, where this rate is low. This distorts trade relations," said Marek Kłoczko, general secretary of the National Chamber of Commerce (KIG). "We have talked about similar reforms to our colleagues in Slovakia, who are satisfied with them, because it brought order to the market. The results were positive despite a tax hike," said Jerzy Bartnik, president of the Union of Polish Craftsmanship (ZRP). (Puls Biznesu, p. 5) T.J.