Government wants to maintain VAT levels for next three years

The government raised VAT levels from 22 to 23 percent and 7 to 8 percent on some goods in 2010 and wants to maintain the rates for the next three years.

Opposition parties, including Law and Justice (PiS) and the left wing SLD, want to lower the rates.

Deputy Finance Minister Maciej Grabowski has said, however, that if the bill on VAT is voted down in parliament, then the rate would return to 2010 levels, and deny the government revenue of up to 6 billion zloty (1.5 billion euro).

The debate in parliament on public finances comes as the government published on the internet, Thursday evening, its bill on transferring 51.5 percent of assets held by Poland's privately-run pension funds to the state.

The move, sharply criticised by opposition parties, will give the government more leeway on public spending levels ahead of the 2015 election.

Poles will now have three months to decide whether they want to divert all of their future pension contributions to the state system or to keep contributing to pension funds in the private sector. (pg)

source: TVP/PAP