When discussing the tax system, it is worth considering the distinction between direct and indirect taxes. Because the proceeds from them are borne by two different trading parties. Indirect taxes, such as VAT and excise duties, although paid by businesses, are borne by consumers. And direct taxes, such as CIT, are paid by the companies themselves. It is a tax on profit – therefore companies should not burden consumers with this tax. One of the possibilities of reducing or avoiding this tax may be deducting investment expenditure from it. However, this is a gateway that many dishonest entrepreneurs use.
“By investing, companies create new jobs, develop the production potential of our economy, and in the future generate tax revenues for the state. However, it happens that the company neither pays CIT nor invests. This is something that requires closer examination because through such tax holes a lot of money is escaping us from the state budget,” Łukasz Kozłowski, chief economist of the Federation of Polish Entrepreneurs (FPP), said.
“However, instead of supervising entrepreneurs and increasing revenues from CIT, it is proposed to increase the excise tax rate. It is a move that will sneak into the pockets of consumers instead of into the pockets of big companies. These plans mainly relate to a new product category in the tobacco market, the so-called novelty products. However, there are no indications that such a change is necessary. The difference between the excise rates is not a tax gap. This is the effect of the legislator's decision, which results from specific, justified premises. When a given excise product is more harmful to health, for example, stronger alcohol or cigarettes, it is justified that it should be subject to a higher rate of excise duty. The implementation of the demand for an increase in excise duty on innovative products will result in taxation 2.5 times higher than ordinary cigarettes. There are absolutely no reasons why products potentially less harmful to health should be taxed much higher than those that harm us more,” Kozłowski emphasized.