A top government advisor’s comments earlier this week that tax hikes could be on the cards in Poland as part of an attempt to cut budget debt has been described as being “out of this world” by one leading Civic Platform member.

“The idea is out of this world and would be the last resort," says Grzegorz Schetyna, a prominent member of the Civic Platform and speaker of the lower house of parliament. “I’m firmly opposed to this. For us [Civic Platform members] tax hikes would be a negation of our very being and our presence in politics. We will do everything to prevent it,” he said.

Schetyna  - currently acting president in Poland until Bronislaw Komorowski is sworn in as president next week - was reacting to a statement by minister without portfolio Michal Boni, who raised the prospect that the government may be forced to hike taxes if austerity measures proved to be insufficient to lower government debt.

“We need to see if better management, discipline and savings will be enough, or if maybe we’ll have to raise the social security premiums and taxes,” said Boni, to the amazement, and surprise, of many of his party colleagues.

Civic Platform came to power in the last general election in 2006 on a ticket of lower taxes – even muting the idea of a low flat tax for all employees. Lower taxes and cuts in public spending have become a signature policy of the centre-right government.

Political sacrilege?

That a government minister could even raise the prospect of a tax hike is a step too far for some Civic Platform members.

Finance Minister Jacek Rostowski is also thought to be against the move, thinking the policy an anathema to the economically liberal government.

A source within the Prime Minister’s office told the Polska – the Times daily that, “Boni was unnecessarily ahead of the crowd when publicly muting tax hikes. But it is true that the government and Prime Minister Donald Tusk are considering a rise in tax. Boni’s statement was supposed to be a litmus paper, which would check the media and general public’s reaction. But we didn’t suspect that Grzegorz Schetyna would react so strongly.”

It’s not just members of Civic Platform – the senior coalition partner – that is agast at the prospect of tax hikes, however. Deputy Prime Minister Waldemar Pawlak – a member of the junior partner, the Polish Peasant’s Party, also says he doesn’t understand the idea.

“Last year VAT was reduced. So it would be strange if this year [tax] was raised,” he said, adding that he hopes that on Friday, Finance Minister Jacek Rostowski will present simple solutions which will not complicate Polish tax system. (pg/mg)