New VAT materials and duties amendment to be discussed on Tuesday

Rzeczpospolita has learned that there will be no change in the 7% Value Added Tax (VAT) rate on construction materials and services before Dec. 31, 2005. In addition, the 0% VAT rate on books and professional journals with ISBN codes will be in effect until the end of 2007. Highway tolls will increase from the current 7% to 22% in 2003. Beginning July 1, 2001 there will be 3% VAT on materials used in agricultural production. The government may discuss the newest amendment to the goods and duty bill on Tuesday, but it is uncertain if it will be forwarded as a government or AWS deputies' initiative. (Rzeczpospolita,p. B1, Oct 7-8