PwC: VAT gap to drop to PLN 39 bln in 2017

Based on VAT collection data in H1 of the year, the VAT gap could decrease to PLN 39 billion in 2017, which equals to 2 percent of GDP, from PLN 52 billion recorded in 2016 (2.9 percent of GDP), advisory PwC calculated. PwC analysts expect VAT revenues to increase by 19 percent y/y to over PLN 150 billion this year. The gap in tax revenues arises from tax fraud, grey economy and the inefficiency in tax collection. Increasing VAT collection has been one of key points in Deputy PM Mateusz Morawiecki’s economic plan. Earlier this year he stated that by increasing the efficiency of tax collection the state budget could see even PLN 20 billion more in tax revenue.