Low taxes don’t protect from tax avoidance
Tourists love Estonia
Polityka Insight prepared a report on the impact of foreign direct investments (FDI) in Poland. The authors show how the FDI influx boosted Polish economy in the past 25 years. The value of FDI exceeded PLN712bn (EUR164.5bn). There were two peaks of investments: right after the collapse of communism and after Poland’s accession to the European Union.
The key findings of the reports are:
- The FDI has multiplied the productivity of Polish companies (companies acquired by foreign owners increased their value added at 2.2 percentage points a year faster than other companies);
- The FDI improved Poland’s companies position in the global value-added chains;
- The FDI stimulated the country’s economic growth (the authors show the “increase of demand – a parameter associated with growth – reached an average of 3 per cent of GDP per year”);
- The FDI boosted Poland’s economic potential by an average of 0.7 per cent annually.
The authors write that “In 2016 the influx of FDI to Poland accelerated again. A value of finished investment projects supported by PAIiIZ raised from EUR800m in 2015 to EUR1.7bn in 2016. 60 per cent of that investments were conducted by the companies already operating in Poland”.
The report can be download here.
Even countries with the lowest tax rates – like Bulgaria – have problems with companies avoiding paying taxes. A report “Runaway Taxes – Who pays taxes in Central and Eastern Europe” shows that the top ten Bulgarian companies “in 2015 received more from the state in terms of tax rebates and offsets than they put back in”.
In Bulgaria there is a flat tax rate – 10 per cent for individual income and 10 per cent for corporations.
The data from the report shows that ten Bulgarian companies with the highest turnover paid only BGN44m (EUR22.5m) in corporate tax. The companies are: Lukoil Neftohim, Auruis Bulgaria, National Electricity Company, Lukoil Bulgaria, Kaufland Bulgaria, CEZ Electro Bulgaria, Bulgargaz, OMV Bulgaria, Express Logistic and Distribution and Saxa.
According to Statistics Estonia, in January 2017 the number of both domestic and foreign tourists to Estonia was 8 per cent higher than in January 2016, writes Err. Foreign tourists accounted for 55 per cent of the total, 62 per cent of which came from European Union countries.
According to Err there was an increase in the number of tourists arriving from Sweden, Norway, and the United Kingdom. 70 per cent of foreign visitors came to Estonia on holiday, and 23 per cent on business.
62 per cent of domestic tourists were on a holiday trip, and 25 percent travelled on business.
What’s up in indexes
BET (of Bucharest) increased from 7,973.00 index points Thursday, March 2nd to 7,990.44 index points Friday, March 3rd. It was up 0.22 per cent d/d and up 21.73 per cent y/y.
BUX (of Budapest) increased from 33,155.19 index points Thursday, March 2nd to 33,193.81 index points Friday, March 3rd. It was up 0.12 per cent d/d and up 36.26 per cent y/y.
CROBEX (of Zagreb) decreased from 2,221.05 index points Thursday, March 2nd to 2,218.38 index points Friday, March 3rd. It was down 0.12 per cent d/d and up 42.23 per cent y/y.
OMXR (of Riga) increased from 768.45 index points Thursday, March 2nd to 771.75 index points Friday, March 3rd. It was up 0.43 per cent d/d and up 23.80 per cent y/y.
OMXT (of Tallinn) increased from 1,113.63 index points Thursday, March 2nd to 1,114.73 index points Friday, March 3rd. It was up 0.10 per cent d/d and up 16.21 per cent y/y.
OMXV (of Vilnius) increased from 561.31 index points Thursday, March 2nd to 561.48 index points Friday, March 3rd. It was up 0.03 per cent d/d and up 14.36 per cent y/y.
PX (of Prague) decreased from 977.16 index points Thursday, March 2nd to 974.23 index points Friday, March 3rd. It was down 0.30 per cent d/d and up 10.32 per cent y/y.
SAX (of Bratislava) increased from 304.00 Thursday, March 2nd to 309.54 index points Friday, March 3rd. It was up 1.82 per cent d/d and down 3.82 per cent y/y.
There was no trading at Sofia’s bourse Friday, March 3rd. The day before SOFIX (of Sofia) closed at 613.07 index points. It was up 37.23 per cent y/y.
UX (of Kyiv) increased from 947.57 index points Thursday, March 2nd to 956.25 index points Friday, March 3rd. It was up 0.92 per cent d/d and up 53.55 per cent y/y.
WIG20 (of Warsaw) decreased from 2,254.51 index points Thursday, March 2nd to 2,232.98 index points Friday, March 3rd. It was down 0.95 per cent d/d and up 18.96 per cent y/y.