PSB suffers as VAT hike forces Poles to stockpile their bricks and mortar

The managing board of the company ascribes the declining trend to a hike in VAT in 2004, which resulted in Poles stockpiling building supplies before the increase came into force. As a result, it seems more reasonable to compare PBS' 2005 results with the respective periods of 2003 rather than 2004. The company's sales fell 28% to zł.285 million from last year, whereas they increased 2.8% in comparison to the first six months of 2003. According to the managing board of the company, PSB' consolidated earnings will be 5% worse than in 2004, if the current market trend settles down. (Parkiet, p.4) J.J.