State Budget appears to benefit from business 19% linear tax rate

According to Rzeczpospolita estimates, the number of entrepreneurs who chose to pay this tax, grew by 50,000 this year and now amounts to almost 250,000. Fears that budget revenues will decrease due to the introduction of the linear tax were groundless as preliminary data shows that tax revenues from entrepreneurs are now higher than in the past. "Let this be a lesson for the government and parliament that the budget can only gain on the lowering of taxes," stated Andrzej Malinowski, the president of the Confederation of Polish Employers. The self employed choose the linear tax to avoid paying a 30 or 40% tax rate. Last year many companies did not choose the linear tax since using various tax allowances proved to be more profitable, while this year when most of the allowances were abandoned linear tax became much more attractive. Another reason for its increasing popularity are the positive trends in the economy, which results in higher company profits and the linear tax allows them to avoid paying higher tax rates. (Rzeczpospolita, pp. A1, B1) E.B.