Government turns to WTO, EU for advice on controversial import tax

Prime Minister Leszek Miller has estimated as 50-50 the chances of the Polish government introducing an import tax. In an effort to avoid a negative reaction from foreign countries the government has turned to the World Trade Organization (WTO) and the European Union (EU) for advice, but has as yet received no reply. The introduction of the tax would not only cause an increase in the price of imported goods but also, since 70% of Polish imports are raw materials, raise the production costs of many domestic products. An import tax was in force in Poland during the years 1994 to 1996, generating 6.2% to 8.5% of total tax revenues. Originally the rate was 5%, but it was reduced to 3% in 1996 as a result of the negative response from the country's foreign trade partners. (Prawo i Gospodarka, p. 3) A.K.