Sejm postpones vote on controversial value-added tax on agricultural products

The Sejm has failed to vote on a crucial element in the 2001 budget draft, the proposed 3% value-added tax (VAT) on agricultural products. The postponement of the vote to next Wednesday has fueled speculations the government may not be able to assemble a comfortable majority to push the budget through the Sejm. Finance Minister Jaroslaw Bauc says the 3% VAT would raise zl. 1.3 billion additional revenue for the Treasury. Another zl. 1.7 billion could also come from other sectors of the economy if the government pushed ahead with a plan to bring VAT regulations into line with European Union (EU) requirements. The Finance Ministry is warning that any failure to push through the recommended fiscal proposals could distort the budget such that many projects would not be able to be financed. In addition, the forecasted macroeconomic targets may not be met . (Prawo i Gospodarka, July 15-16, page 1,2) S.M.