KPWiG: Sees July 2004 as the earliest for capital gains tax

Jacek Socha, the head of the Securities and Stock Exchange Commission (KPWiG) announced in an interview with Puls Biznesu, that a realistic date for the introduction of the capital gains tax is July 2004, trying to put pressure on the Finance Ministry not to go ahead with its plan to introduce it on January 1, 2004. "We think that the rules of implementation for the capital gains tax should be made public at least a year and a half before its introduction. That would allow investors to get acquainted with the new regulations and execute possible returns before the tax is introduced," said Socha. According to companies from the IT sector which will be responsible for modifying computerized systems in all brokerage houses, they need at least four to six months to adjust the systems. Therefore a realistic date is July 2004, however as Socha emphasized, KPWiG aims at introducing the tax not earlier than 2005. "The following year is a very important moment for the Stock Exchange. Several privatizations will take place, and we will join the EU. This will change the functioning of the stock exchange," said Socha. (Puls Biznesu, pp. 1, 4) A.K.