Poland mulls over raising tax

31st July 2010

A VAT increase would make Poland the forth highest in the EU

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Poland’s ruling Civic Platform (PO) party is beginning to talk of raising VAT, by one percentage point for a limited time to help curb the budget deficit and plug the gaping hole in public finances.

To battle the raising public debt and deficit, the party has never been closer to abandoning its low-tax agenda.

“We need to see if better management, discipline and savings will be enough, or if maybe we’ll have to raise the social security premiums and taxes,” said Michal Boni, a minister without portfolio, and top advisor to Prime Minister Donald Tusk, earlier this week.

This led to strong criticism of the idea both from within the ruling Civic Platform and the coalition.
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