Politicians announce tax reform programs ahead of parliamentary election

The major political parties, poised for the autumn parliamentary election, have launched into battle over their tax reform programs. Civic Platform (PO), which made the tax issue one of the most important points of its election program, envisages lowering personal income tax (PIT) to 15% in 2003 and abolishing the other two thresholds. Freedom Union (UW) stands for two PIT tax thresholds of 18% and 28%, an option once passed in the Sejm but vetoed by the president. Like Solidarity Election Alliance of the Right (AWSP), it doesn't plan any changes in company income tax (CIT) within the next few years, but says this would also be lowered in the future. The Polish Peasants' Party (PSL) wants to replace the CIT with turnover tax, and proposes large investment tax breaks of up to 60-70 % for those creating new employment. The Law and Justice Party (PiS) aims to block legislative attempts to increase the tax burden by raising the required voting majority needed to pass the bill. The Democratic Left Alliance (SLD) plans to stick to the currently binding regulations, but would like to see most of the tax breaks scrapped. (Rzeczpospolita, June 30-July 1, p. A1) J.K.