Tax reform means elimination of breaks and introduction of capital gains tax

Lower Taxes for those on low wages, uniform tax policies for small bus inesses, elimination of all tax breaks and the introduction of a flat-rate capital gains tax - these are the key changes to the tax system proposed by Finance Minister Grzegorz Kolodko on Friday. Kolodko also said his Ministry would seek the release of a third of zl. 27 billion special fund created after reevaluation of hard currency reserves held by the National Bank of Poland (NBP). The move was immediately criticized by both the NBP and by Monetary Policy Council (RPP) The extra income raised once the new reg ulations take effect would be used to finance the nation's EU commitments, estimated at zl 31 billion in the first three years of EU membership. (Parkiet, March 1-3, p.1; Rzeczpospolita, March 1-2, p. B1) J.K.