J.W. Construction sales up, and ready for VAT hike in 2004

J.W. Construction, a leader on the Warsaw flat construction market and one of the largest property developers, sold a record number of 301 new flats in September and, "I believe that October will be as good. We will sell over 2,500 new flats for 2003 as a whole, which should generate revenues amounting to zł. 500 million," said company president Józef Wojciechowski. He claims that the profitability of sales should reach a level of 7%-8% for the year. Wojciechowski thinks that the main reason for the upturn in sales of new flats is the falling cost of mortgages and not the planned increase in VAT on construction materials scheduled for the beginning of 2004. "The new regulation will hurt individuals and small companies operating in the grey zone, which will be unable to deduct the tax," explained Wojciechowski. He added that the VAT increase might simply help the developers by wiping out competition. The company is currently increasing its presence nationwide and abroad. (Parkiet, p. 3) M.M.