The introduction of capital gains tax on Jan 1, 2004 is now a certainty

Most Sejm Deputies voted for an early introduction of the 19% capital gains tax, which will now come into force on January 1, 2004. All but two Democratic Left Alliance (SLD) deputies voted against the amendment to postpone capital gains tax by three years. Other supporters of the new tax included all fourteen deputies of the Labor Union (UP) and six out of thirteen representatives of the Polish Family League. Opponents of the tax included all members of the Civic Platform as well as Law and Justice (PiS). The 184 votes they mustered was too far to few to delay the introduction of the legislation. The bill has been passed to the Senate, with a final decision now likely by the end of November. "Experience proves that one cannot implement or create necessary tools, which will be required from the brokerage houses, within such a short period of time," said the Warsaw Stock Exchange president Wiesław Rozłucki. In Hungary, when a similar capital gains tax was introduced, turnover on their stock exchange fell by 60%. (Parkiet, p. 1) M.M.