Scrapping tax break may damage Grupa Lotos privatization

"It is high time to end with these special preferences for some companies," said Deputy Finance Minister Jarosław Neneman. At the moment, five refineries in the south of Poland benefit from the deductions. Two of them, in Trzebinia and Jedlicze, belong to the Orlen Group. The remaining three, in Gorlice, Czechowice and Jasło, are under the supervision of Nafta Polska. At the beginning of 2005 they are going to join Grupa Lotos, which is currently preparing to debut on the stock exchange. According to Parkiet, the largest tax break - the so called transport deduction - accounts for about zł.200-300 million every year. Andrzej Szczęśniak from the Adam Smith's Center believes that the Ministry's proposal is good, but he fears that it may block the privatization of Lotos. (Parkiet, p. 1) A.F.