Tax revenue to grow as gov't clamps down on fraud
PR dla Zagranicy
Next year’s VAT revenues are expected to be 6.6 percent higher than in 2017, according to assumptions in the proposed budget, as the government clamps down on tax fraud.
Photo: Narodowy Bank Polski
VAT goods and services tax revenues are expected to reach PLN 166 million (EUR 39 million), about 8.1 percent of next year’s forecasted GDP, according to the budget, is being consulted b y a social dialogue council.
The finance ministry has predicted PLN 70 billion in revenue from excise, up 2.9 percent on this year's expectations, while income tax is expected to bring PLN 32.4 billion in revenue, 8.7 percent more next year than in 2017.
The government expects public debt to fall to 51.7 percent of GDP this year and remain at this level in 2018.
Net borrowing next year has been estimated at PLN 63.3 billion.
The finance ministry said this year's budget deficit will come in at under PLN 33 billion, while allowances had been made for nearly PLN 60 billion.
“We predict that budget revenue in 2017 will be PLN 18.4 billion higher than initially planned in the budget bill. The expected excess of the initial forecast results mainly from greater revenue from VAT and higher profits from the National Bank of Poland,” the finance ministry said in a statement.
The finance ministry also noted an improved job market, with unemployment at the end of the year expected at 7.2 percent, which it expects to fall to 6.4 at the end of 2018.
The government's budget bill also expects higher spending on social welfare, including benefits for families and retirees. (vb)