Tame tax plan

The Ministry intends to introduce tax breaks for families with at least three children. The full family tax break for all children and the two new tax rates of 18 and 32 percent and the tax threshold of zł.85,528 will not be introduced earlier than in 2009.

"Our goal is to lower unemployment," said Gilowska. Decreasing the personal income taxes was impossible due to Poland's stretched public finances. The Ministry wants to start defrosting the existing tax brackets in 2006.

The Ministry estimated that the costs of the reform in 2007 will amount to zł.9.15 billion. Gilowska plans to cover these through tidying up the tax system, the expiration of the building tax break, fighting the gray economy and equalizing the excise duty on diesel and heating oil. (Reuters)