Tax bill awaits presidential signature after winning parliamentary backing

The Sejm yesterday gave its final approval to a $1 billion package of tax in creases for 2002, which includes a controversial levy on income from interes t. The package now only requires the signature of President Aleksander Kwasn iewski to become binding. The bill sets a 20% tax on savings gains, a move t hat has created a public outcry and come under fire from central bankers, wh o say it might restrict the scope for future interest rate cuts. Moves by co mmercial banks in recent days to offer customers new savings accounts that w ould be exempt from the tax have been sharply criticized by Prime Minister L eszek Miller, who called the actions "unpatriotic." Changes made to the savi ngs tax bill have eliminated many of the loop-holes exploited by the banks t o avoid the tax. The package also includes a bill that freezes the threshold s for the three income tax brackets at 19%, 30% and 40%, and seeks to boost budget revenues by scrapping popular housing tax breaks. (Reuters)