Poland’s progressive tax system could alienate investors

Finance experts and business people are pointing out that Poland is surrounded by countries with low, flat tax rates. If Polish governments refuse to grasp the nettle and lower tax, investment might just head abroad.

In East Central Europe, flat tax rates have already been introduced in Slovakia, Lithuania, Latvia, Ukraine, Estonia, Russia and Romania. Soon the list will also include the Czech Republic.

Only Poland, Germany, Hungary and Belarus have progressive taxes, depending on size of income.

“If ]Poland] doesn’t introduce it, the country lose the foreign investment battle, we’ll be less and less competitive”, Peter Kay, financial expert from KPMG, a worldwide consultancy was quoted in Poland’s Dziennik daily.

A flat tax, however, though once the policy of the opposition grouping Civic Platform, is something that scares many politicians in Poland.

“Flat tax works like a counter Robin Hood: takes away from the poor to give to the rich”, said vice prime minister Przemysław Gosiewski
Source:thenews.pl