Government plans sales tax increases to generate zl.3 billion in revenue

In steps aimed at generating some zl.3 billion for next year's budget, the Finance Ministry is preparing changes to the Value Added Tax which would increase the VAT on construction materials and services from the present 7% to 22%. It would also introduce a 22% sales tax on apartments sold by developers and housing cooperatives, and increase the VAT on hand-made products from the present 3% to 22%, as well as on some services which thus far had been taxed at the 7% level. According to Rzeczpospolita, next year's budget revenue is estimated at zl.140 billion, and according to earlier statements by Finance Minister Marek Belka, next year's expenditures should exceed zl.183 billion. Meanwhile, according to unofficial sources quoted in Puls Biznesu, there will be no tax increase on beer and vodka. (Rzeczpospolita, p. B1) P.J.