Investors in economic zones protest against losing real estate tax breaks

Investors operating in special economic zones (SSEs) are protesting against being deprived of tax benefits, claiming that new regulations infringe on the rights they acquired when originally investing in the zones. These included lengthy tax holidays - ten years for income tax and twenty for real estate tax. However, such benefits are out of line with European Union (EU) regulations and this is why Poland amended the law on SSEs, scaling back the tax breaks as of the beginning of 2001. According to new regulations, investors are now obliged to pay real estate tax. Some of them are already filing protests with the Economy Ministry; others expect this issue to be resolved. "I think this matter will quickly be cleared up on a government level," said Jacek Zarnowski, director for contacts with the government at Opel Polska. Piotr Wojaczek, head of the Katowice SSE is advising investors to file for tax deferment until the situation is sorted out. Representatives of the SSEs plan to protest the change of regulations with the Constitutional Tribunal. (Gazeta Wyborcza, p.24) T.J.