SLD's tax proposals face opposition in the Sejm from coalition partner

During a Sejm debate yesterday, the coalition government led by the Democratic Left Alliance (SLD) presented its proposals for a two-year freeze on personal income tax brackets and the introduction of a 20% tax on income from bank deposits. By adopting a restrictive tax policy Finance Minister Marek Belka hopes to generate an additional $1 billion to meet his zl.40 billion deficit target in 2002. However, the proposals have been heavily criticized by the SLD's coalition partner, the Polish Peasants Party (PSL). PSL member Dariusz Grabowski told the Sejm, "The political cost of this will be too high because the coalition will appear as if it was dipping into the pocket of the average citizen... From the point of view of the economy, it will dampen the propensity to save." The draft bill has been sent to the parliamentary Public Finances Commission for consideration. The amended tax bill has to be passed before the end of November, if it is to become effective next year. (Rzeczpospolita, p. B1; Reuters) M.T.