The Warsaw Voice » Business » News - February 2, 2018
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VAT changes possible
   
The Polish government may decide to reduce the basic VAT rate to 22%, while at the same time changing the distribution scheme of 5% and 8% rates for goods and services, the daily Dziennik Gazeta Prawna says, citing its unofficial information from the ministry of finance.
The government would thus solve its pending VAT dilemma as the standing legislation assumes coming back to lower VAT rates as of 2019, unless the policy makers decide to prolong the current higher rates in a move that would be difficult to defend due to the very good economic situation.
Keeping the higher rates, however, is what the government is more likely to do as lower VAT rates would mean ca. PLN 7 billion less in state's yearly revenues, Millennium bank's economist Mateusz Sutowicz observes. Reducing VAT should be treated as a safety measure, to be used in times of an economic slowdown as a stimulant, BZ WBK's economist Marcin Luzinski adds.