“Even those who disagree with me on many issues […] say that the bill is the biggest success for banks which they can imagine,” Modzelewski, who held the role of deputy finance minister between 1992-1996, told Polish Radio on Thursday.
“I ask all politicians - particularly those in government, because they have more clout than those in opposition - not to send such negative signals. Because the eight-year term in taxes, and other public finances, which I am sure is behind us, […] was characterised by a specific submissiveness. That brand of democracy was only a façade, behind which sat several lobbyists, who conducted their own business,” Modzelewski said.
Speaking about the current state of public finances, he said: “If from VAT and customs alone, Poland loses a minimum of three percent of GDP per year, which is well over PLN 50 billion, that is very bad.”
The changes, Modzelewski said, were brought about by a European Parliament resolution adopted on 6 July.
“They called on the Member States to accept one of the worst amalgamation of destructive tax systems – a mixture of public authorities and business, which is engaged in tax evasion. It's a real horror that those whose business it is to avoid taxes, are advisors to governments and on top of that can earn money by introducing new laws,” he said. (rg)
Here are some selected excerpts from the interview:
“I don't think I would want to go back, because the time now is for the thirty- and forty-year olds. It's very important because work in the public sector, and especially in finance, taxes particularly, looks like a catastrophe. Perhaps things are not as bad as they were in 1992, the worst time, but bad, and again there's a need for a new start, so if someone has the strength to be working 18 hours a day you're welcome...”
“The era between 1992 and 1994 is what I am responsible for and I don't negate that responsibility, although my adventure in the government ended in 1996, but what was done then endured in fairly decent shape until 2004, then the fundamental laws were amended. As we know, since 1 May, 2004, we have been a member of the EU and the two most important laws were written anew. And then the catastrophe started which still hasn't ended. We lose annually - this is a very careful estimate on two taxes vital for the state budget - VAT and excise duties - 185 or 186 billion [złoty]. I don't want to make simplifications that harmonisation was a cause of the disaster but it was. One of many causes."
“On the one hand the law has loopholes, on the other, honest taxpayers complain that it's much too complicated. Even advisers get lost in the multitude of amendments. Is zero option and altogether new legislation feasible? I'll say more: it is necessary. Law, like anything made by humans, must be the only cultural product that has a historical continuation. Even art doesn't have this continuity. Law does, having been created for thousands of years. And so it needs cultivation and good faith."