VAT may go down, energy tax to remain...and a new telephone tax?

Economy Minister Jerzy Hausner was yesterday presented with a document prepared by the Finance Ministry, which contains proposals for changes to the current taxation system that should be made within the next few years. The report envisages a lowering of the basic VAT rate from 22% to 20%, the introduction of excise tax on telephone connections and maintaining excise tax on energy, which was implemented by the former finance minister Marek Belka as a temporary measure. Jerzy Hausner recently officially announced he plans to lower the level of VAT down to 19%, however, he was unable to precisely state the date when this would take place. According to Rzeczpospolita, the government will continue with attempts to lower the taxes by liquidating tax reliefs, including those relating to those building their own house. The Finance Ministry also proposed serious changes in the methods of taxation on real estate. (Rzeczpospolita, pp. A1, B1) A.K.