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Much tax talk leads to silence in the Sejm

A few changes did manage to make it through the discourse, however, the most important being the introduction of a two-grade tax scale with 18% and 32%, although this will not be introduced until 2009. There will also be no reduction of ZUS premiums. The changes will be not introduced next year as the first would deprive the budget of zł.3.8 billion, while a reduction of ZUS premiums would cost zł.12.6 billion. So, until 2009 there will no change in the current rates of 18%, 30% and 40%.  Tax thresholds, however, will rise. The first to zł.42,000 and the second to zł.85,000. Sejm discarded a proposition by the Social Democratic Left Alliance (SLD) which assumed tax preferences for entrepreneurs creating new jobs and freeing of tax people living from social benefit. According to some experts, it seems that we will pay higher taxes in 2007 because the excise is rising. Some claim that a 5% economic increase the Sejm could have decide on decreasing ZUS premiums and two grade tax system. (Rzeczpospolita, October 28-29, p.A1) M.M.

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