Kolodko faces attack over 'unconstitutional' tax amnesty

Poland's constitutional tribunal yesterday rejected the government's controversial tax amnesty bill, sparking calls from the opposition for the resignation of the scheme's author, Finance Minister Grzegorz Kolodko. The planned tax amnesty, coupled with a declaration of assets, was intended to curb Poland's shadow economy and was a key-stone of Kolodko's economic revival package, which also includes a debt write-off initiative for companies. The Finance Ministry declined to comment on resignation calls, but insiders say Kolodko would not bend to such pressure. The leftist government was hoping to lure tax dodgers with a forgiving 7.5% tax rate - later raised to 12% by parliament - to come clean on taxes owed in 1996-2001 at a fraction of the 75% fine they would pay were they caught. Under the bill, Poles - who now pay 19%, 30% or 40% of their income in taxes - will be required to declare their worldwide income and assets in full, exposing them to the full force of the steeply progressive income tax system. "The bill is unclear, confusing...and misleading, because it goes against present tax law," said Chief Justice Marek Safjan. Revenues from tax abolition were penned into the 2003 state budget plan at zl. 600 million, a drop in the planned deficit of zl. 38.7 billion. The Finance Ministry said in a brief statement that it would address the issue today during a parliamentary debate on the 2003 budget draft. (Reuters) A.Z.