Finance ministry considers imposing taxes on subsidy distribution

The finance ministry has decided that companies responsible for the redistribution of EU subsidies among Polish companies will have to pay income tax. The proposal is the outcome of a debate between the Office of the Committee for European Integration (UKIE) and the finance ministry. According to the ministry, the only entity entitled to tax breaks in the distribution of financial assistance from overseas is the final beneficiary. The UKIE, on the other hand, claims that under the law, tax exemptions are granted to all the intermediaries responsible for the distribution of the money. However, ministry insiders say that imposing taxes directly on aid money would violate EU laws and result in the suspension or even withdrawal of EU assistance. (Rzeczpospolita, p. B1) J.K.