Isuzu Motors unhappy with local government decision to impose taxes

Isuzu Motors Polska, a company in Tychy producing modern diesel engines for passenger cars, had to pay zl 1.7 million in real-estate tax. Isuzu has paid the bill despite the fact that it signed a letter of intent with Tychy gmina. The letter was to guarantee tax relief, regardless of any later changes in regulations. The company also has a similar amount to pay for 2002. A regulation introduced in January 2001 enabled local governments to collect taxes on real-estate in Special Economic Zones (SSEs), which had previously been exempt from this type of tax. Not all local governments charge this tax to companies hence Isuzu's appeal to the Supreme Administrative Court (NSA) against the decision of Tychy gmina. "Isuzu invested in the construction of its factory in Tychy mostly due to the tax breaks. Without them we would not have decided to invest," said Jaroslaw Roztocki, Director General of Isuzu Motors Polska. (Prawo i Gospodarka, p. 5) P.W.