KPRM

Deputy PM and Economy Minister Waldemar Pawlak said that his Polish People's Party (PSL), coalition partner of the ruling Civic Platform (PO) party, would not support any tax hike. The statement can be seen as a direct response to recent suggestions from the government that taxes could be raised to help reduce the budget deficit.

“I do not know what Finance Minister Jacek Rostowski's proposal is. We need to wait until Friday's parliamentary session, when we will learn the long-term state financing plan,” Mr Pawlak told a public radio station. He also said his party would certainly not agree to increased taxes on basic commodities such as food and medication, since public finances aren't in such a terrible state.

However, he said the government cannot continue to put off financial restructuring since the Constitution allows a maximum state debt of 60 percent of GDP.

Meanwhile, according to Rzeczpospolita's sources, a tax hike could do more harm than good, but economists have a list of ideas which they say could cut budget spending by as much as zł.30 billion.

Poland AM