Finance Ministry under fire over capital income tax

The Securities and Sock Exchange Commission (KPWiG) and the board of directors of the Warsaw Stock Exchange (WSE) are calling for a postponement to the introduction of the capital income tax, scheduled for the beginning 2004. Despite a Finance Ministry pledge to present its proposals to investors, the market still hasn't received any details of the proposed legislation. "We have presented our opinion to the Finance Ministry. Introducing the tax from the beginning of 2004 is not technically viable. Therefore, we suggest the new regulation take effect one year later. Of course the best solution would be to abandon the whole idea," said Wieslaw Rozlucki, chairman of the WSE. KPWiG has proposed introduction of a flat rate tax on all income from capital markets, but would see the Finance Ministry introduce tax relief for long-term investors (on investments of over six months). The tax would be paid once a year without any monthly tax reports or advance payment. (Puls Biznesu, p. 4) J.K.