Infrastructure / Innovations Polish Briefing 19 May, 2017 9:00 am   
Editorial staff

Polish Briefing: Andrzej Duda wants NATO and EU expansion. Billions in VAT revenue in 2018

What goes in Poland on 19th of May.

Donald Tusk wants sanctions for Poland

The European Commission is threatening Poland with sanctions if it does not immediately take in refugees. “If the Polish government does not take part in sharing the refugee relocation efforts, this decision will have certain consequences,” said Donald Tusk, President of the European Council.

“Poland, Austria and Hungary have not relocated a single refugee,” informed the European Commission last Tuesday. The EC also threatened that if we do not join the relocation within the next month, it will open against Poland “infringement procedures for not delivering on Member State’s commitments.” In 2015 the former Polish Prime Minister, Ewa Kopacz agreed to accept 7 thousand migrants.


Andrzej Duda wants NATO and EU expansion

President Andrzej Duda endorsed NATO end EU expansion through the acceptance of new member states from Central and Eastern Europe. During his meeting with speakers of parliaments of the region, Andrzej Duda stressed that NATO and the EU should open up to new members.

“I believe that doors to Europe as well as NATO should remain open,” said the president. He also stressed he trusted this was “a perspective of many of the Western Balkans countries, a perspective of numerous East European countries”. The president ensured that Poland “was open” and would support such aspirations.

The Summit of Speakers of Central and Eastern European Parliaments that is taking place in Warsaw hosts over twenty state representatives, including guests from Bosnia and Herzegovina, Bulgaria, Croatia, Lithuania, Latvia, Moldova, Ukraine and Hungary, as well as Turkey and Kazakhstan.

Billions in VAT revenue in 2018

Mateusz Morawiecki, the Polish Minister of Development said that in 2018, PLN 20-30 billion needs to come from tightening the VAT collection system. In 2016 the reform ensured a few additional billion zlotys. At the same time, UN estimates suggest that the government lost about PLN 40 billion of potential annual revenue due to VAT and CIT avoidance alone. Since 2016 the Law and Justice party’s government has been implementing a comprehensive set of VAT reforms. Institutional optimization, sanctions for incorrect VAT declarations and harsher consequences for tax frauds are to ensure additional funds to cover the government’s expenses.

Morawiecki added that new reforms, which would abolish the CIT were underway.