KERM demands that ministries be consulted on income tax proposals

The Cabinet Economic Committee (KERM) has instructed the finance ministry to start urgent consultations with all the ministries involved, concerning its amendment to the Personal Income Tax (PIT) Act. Committee members also want the finance minister to outline the likely effects the proposed changes would have on the budget, on business and on taxpayers. Under the ministry's draft, two new tax rates, of 18.5% and 37%, would be introduced in 2002, which would be brought down in stages, to reach 17% and 34% in 2005. Other changes would include the abolition of preferential tax policies for married couples and single parents, as well as for the purchase and renovation of houses. The ministry also wants to impose a tax on various welfare benefits. It promised, though, that the poorest citizens would not loose out. (Rzeczpospolita, p.B2) M.K.