Tax breaks to go, tax brackets to remain

As alluded to in yesterday's Poland AM, Personal Income Tax (PIT) brackets will remain the same next year; however, the government has decided to eliminate most of the current tax breaks. According to the Finance Minister, Andrzej Raczko, the tax allowance, currently zł. 2,790, will be increased by 13.5% to zł. 3,168 in order to compensate for the heavier tax burden. The tax breaks that are to be scrapped, include house renovation and construction breaks and fees paid to organizations in which membership is obligatory for job purposes. "What will remain unchanged, will be joint taxation for married couples, breaks for insurance payments, rehabilitation, donations and housing loan interest," the minister explained. Furthermore, next year the Finance Ministry will introduce a 19% unified capital gains tax that will also include revenues from the sale of securities. "This will mean lowering the tax on bank deposits by 1% and increasing the tax on dividend income," Raczko said. (Puls Biznesu, p. 6; Parkiet, p. 1) J.K