Local governments have abandoned their dreams of the cadastral tax for now, but they are still after higher revenues from land and buildings.They came up with geographical tax progression in order to save the budgets of communes [gmina]. Respectively, the real estate tax rates would be higher in sub-regions where GDP per capita stands above the national average.
When Prime Minister Donald Tusk addressed parliament last week he was speaking to a much wider audience than just the deputies sitting in front of him and the national public – key recipients of his message were the analysts whose recommendations guide the decisions of both equity and fixed income foreign investors.
When adopting last year the act reducing the level of the contribution transferred to Open Pension Funds (OFEs), the government promised another amendment. It was designed to force an increase in competition between the funds, improve their efficiency and reduce management costs. The government failed to keep its promise. This may prove that OFEs are already treated as a temporary solution.
The Government has submitted a draft 2013 budget to the Sejm. With the economic growth planned for 2.2%, revenue is to increase by 2.4% in nominal terms and expenditure by 1.9%, excluding the European funds. Analysis of the figures shows that the Government counts more on the increase in tax revenue rather than on expenditure savings.
At the end of September at the latest, a draft budget for 2013 will be submitted to the Sejm. Due to the economic slowdown, it may be difficult to implement it, but this does not have to be so. The budget has many safes with funds. We have asked Elżbieta Suchocka-Roguska and Halina Wasilewska–Trenkner, authors of many budget drafts, whether it is possible to reach for such funds.
As far as the changes in pension system are concerned, we may learn the most from the Czechs and Slovaks. Surely, we should make every effort in order to prevent the government from nationalizing funds gathered in the second pillar. Let’s hope Warsaw will not become another Budapest, says Mateusz Guzikowski, Civil Development Forum (FOR) economist.