Finance Ministry meets today to discuss new tax scheme

The document envisages an introduction of two tax rates of 15% and 25% for personal income, with a threshold of zł. 50,000 and a tax free sum of zł. 700. The strategy also plans to create one bill regulating income from people running small businesses and the liquidation of the recorded lump sum tax. According to the Finance Ministry, the strategy will bring the tax rates in closer alignment through the liquidation of tax reliefs and an introduction of a gradually decreasing sum free from tax. In this way, tax revenues will be at a similar level that they currently are, while the marginal rates, which currently stand at 19% and 40%, will be lowered. This additionally, according to the Ministry, will be well accepted by the public. The strategy calls for a gradual change in tax rates. In the first phase, between 2005-2006 the sum free from tax and tax thresholds will be modified, while in the second phase, starting 2007, the rates would be significantly lowered. (Rzeczpospolita, p. A1) A.K.