Timing of VAT on agricultural and forestry sector depends on coalition fight

"Value-added tax (VAT) in agriculture and forestry will be introduced by Sept. 4 and will be at the level of 3%," decided the Senate National Economy Commission yesterday. The original date of introducing this tax was July 3, but then the Commission decided preparations will not be finished by then and delayed its implementation. One of the deputies claims that Sept. 4 will hurt farmers. When they sell grain there will be no wholesale return and they will not get any money for the fuel they paid for. The timetable is contingent on a settlement of the coalition crisis. "If the coalition will strike a deal then we will introduce a new VAT level. Otherwise it will remain at 0%," said deputy Stanislaw Stec. The Commission also wants timber to be included in the 3% VAT level as now it is 22%. (Rzeczpospolita, page B1, Prawo i Gospodarka, page 8) M.M.