VAT cuts aimed at stimulating growth - but business fear it's all hot air

"We want to find a of way stimulating consumption strongly and creating a better environment for using structural funds, as well as helping Polish investors compete with foreign companies," said deputy Prime Minister Jerzy Hausner. The government is also proposing to eliminate the 0% and 3% tax rates, and leaving the 7% VAT rate only on indispensable goods, such as food. Hausner wants to introduce the changes as soon as possible, which could mean sometime next year. "We plan to facilitate indirect tax rules," said Mirosław Gronicki, Finance Minister. Entrepreneurs are very optimistic about the governmental plans, but they fear that in the end the taxes will only be increased as usual. (Puls Biznesu, pp. 1, 13; Parkiet, p. 9) M.M.