Government sets higher import duties, lower sales tax to help car makers

The government has decided that, as of Sunday, sales tax on new cars will be slashed, while duties on used cars imported from the European Union (EU) will be sharply increased. The measure is aimed at assisting the recovery of domestic auto producers, which are suffering badly as a result of the current slump on the market. The excise on imported used cars will rise gradually, depending on the car's age, up to a maximum 65%. Meanwhile, tax on new cars will be cut from 6% to 3% for cars with engines up to 2 liters, and from 15% to 12% for those with bigger engines. Dealers, who have long been demanding stricter measures to curb imports of second-hand cars, welcomed the decision. "It's a step forward. It's hard to expect an immediate recovery. But I hope it will help new car sales bottom out," said Wojciech Drzewiecki from car market monitoring agency Samar. (Prawo i Gospodarka, pp. 1, 5; Reuters) P.W.