More and more tax increases on the way to make the budget work

The government has based its new budget proposals on the concept that it will raise another zl. 3 billion from taxation. This brings the total new tax burden to over zl. 6 billion if the proposed changes by ex-Finance Minister Marek Belka are also taken into account. On Saturday night, Parliament voted to raise the health insurance contribution from 7.75% to 8%, which is equivalent to taxing every working taxpayer an extra zl. 54-60 per year. The budget problems are also likely to mean VAT will be increased, which will also affect every person. The new budget will have its revenues boosted by around zl. 1 billion due to the withdrawal of tax relief on those who build new flats and houses. The tax imposed on the interest on savings is expected to bring zl. 1.4 billion within the next year. An additional zl. 600 million will probably be generated from freezing individual tax brackets. Businesses are also being hit. At present, the corporate tax rate of 28% will only be lowered to 27% and not to 24% as had been previously assumed. This is supposed to further enrich the budget by zl. 1.5 billion. (Rzeczpospolita, p. B1) K.Z.