Finance Ministry discusses higher VAT rates

The Ministry of Finance appears to be considering increasing VAT rates. Analysts fear that such a move could be very unfavourable for the economy, so they suggest that such a move should be accompanied by lowering income taxes, which would help encourage entrepreneurs to invest more, and at the same time would also attract foreign investors. "At present we have no idea what kind of VAT increase the Ministry will propose and indeed if they will propose any increase at all, but any indications of such a move causes unease," Mieczyslaw Bak from the Chamber of Commerce (KIG) told Gazeta Prawna. He stressed that this would stand in conflict with governmental pledges to provide a friendly environment for the development of companies. (Gazeta Prawna cited by www.taxonline.pl) M.M.