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Sejm votes down government value-added tax amendments at first reading

Sejm votes down government value-added tax amendments at first reading The government's amendment to the value-added tax (VAT) and duty bill was rejected on Friday at the first reading. Under the rejected amendment the VAT rates were supposed to be increased to match with European Union (EU) requirements. Two new proposals were forwarded to the Sejm commission by the Polish Peasants Party (PSL) and Christian National Union (ZChN) deputies. In its proposal, PSL wants to leave the 0% VAT rate on fire protection equipment sold to fire brigades and on press publications. ZChN wants to leave the 7% VAT on construction and materials until the end of 2005. According to Krzysztof Dzierzawski from the Adam Smith Center, the rejection will not improve the condition of the construction sector. (Prawo i Gospodarka, Sept 23-24, page 8)

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