New auto sales down 19% in September over last year

As of the end of September, 19% fewer cars new cars had been sold in Poland than in the same period last year, mainly due to the two increases in excise duty this year on imported autos, which currently amounts to 6%. The increases were intended to provide more state revenues, but they have in fact not done so. Automobile industry analyst Samar estimates that the State Treasury has already lost about z3..100 million compared to last year. Although the income this year from the excise duty has been about z3. 400 million higher than last year, that increase has nevertheless failed to compensate for the losses due to lower VAT income as a result of the decline in sales. According to Samara, the State Treasury received z3. 270 million less in VAT income than in the first 9 months of 1999. Only 32,000 thousand cars were sold last month, which is 18,000 thousand less than in September 1999. This trend is expected to continue, with the decline in auto sales exceeding 20% by the end of this year. (Prawo i Gospodarka, p.1)