Polish Prime Minister Leszek Miller voiced his full support for a business lobby initiative to reduce the income tax on individuals running their own businesses to the 19% that will be effective for corporations in 2004.
To do so, the government will need to find some PLN 2.2 bln since the move to 19% would mark a tax cut for many small businesses that now pay according to the personal income tax scale of 19%, 30% and 40%. It will also have to send an auto-amendment to its personal income tax bill, which is already in parliament.
The 19% rate for small business owners filing as individuals is still a step back from prior calls for a flat tax for all personal income. The government has said only that it will consider and propose the notion for broader talks.
Miller's cabinet has already approved a slashing of the corporate tax from the current 27% to 19% in 2004.
Source: Interfax
