Sejm to go over tax code

If they are passed, the fiscal system will change substantially. First of all, two PIT rates of 18% and 32% will be applied as of 2009. Already, in 2007, a personal tax allowance will increase, as well as the level of income subject to 30% and 40% tax brackets. If the bills are passed, it will not be possible to use an exemption for repaying interest on commercial mortgage loans or Internet fees as of next year. Entrepreneurs will not be able to deduct the cost of representation, but at the same time there will be no limit for marketing expenditures. Moreover, heritage and donations to immediate family will be exempted from taxes. Other proposed changes envisage alterations to VAT law, prohibiting the deduction of tax for cars and fuel. (Rzeczpospolita, pp. A1, C1) M.M.