Remorse after divorce: Senate votes for 3%VAT on agricultural products
The Senate voted on Friday to implement a 3% Value-Added Tax (VAT) on
agricultural products, overruling the Sejm's earlier decision to impose zero
VAT. The new tax will raise zl. 1 billion for the Treasury. The bill will
now go back to the Sejm, which may reject the amendment with a majority of
votes (50 plus 1). A maverick group of Solidarity Election Action (AWS) may
tip the scales again and help the opposition defeat the bill. To win their
votes again, AWS leaders have made a proposal to introduce fuel subsidies
for farmers and create a sugar holding Polski Cukier consisting of 16 sugar
mills. The row has been further exacerbated since the Senate backed the
Finance Ministry's amendment to postpone bills coming into effect until the
beginning of September. This amendment will not allow farmers to deduct VAT
from profits made during the July-August harvest. Farmers believe this is a
ploy to levy VAT on subsidies they will receive. (Gazeta Wyborcza June
10-11, page 36) P.S.
