Flat rate tax to apply to all businesses, big and small, from 2005

The Finance Ministry yesterday confirmed that the introduction of a uniform tax rate for all economic entities is to be introduced in 2005. "That would include all entities running economic activities, also those which currently pay the PIT rate," said Jan Czekaj of the Finance Ministry, adding that it would be a flat rate tax, as the one for corporations. Currently small economic entities are subject to the PIT rate, where rates of up to 40% apply. During the Parliamentary discussion concerning the reform of public finances, most deputies agreed that the most important changes have to be made to fixed expenditures, the tax system, and the privatization process. The head of Business Center Club, Marek Goliszewski, criticized the government for not announcing precise plans concerning these changes and how they will be introduced. (www.onet.pl) A.K.