This year marks 20 years since the introduction of the capital gains tax, the so-called. Ray tax. According to some economists, it should be canceled or temporarily suspended in order to combat inflation.
According to a poll by the daily newspaper Rzeczpospolita, 12 out of 26 economists consider the abolition or suspension of the capital gains tax (the so-called Belka tax) a good idea to fight inflation. Proponents of the tax break emphasize that this could increase the yield on deposits and other savings products (the tax reduces yields by 19%). The newspaper notes that recently a large group of Poles transferred funds from current accounts to urgent accounts. In June alone, the value of deposits increased by a record PLN 23.7 billion, while the value of current accounts decreased by as much as PLN 23 billion.
Is protein tax elimination better than protective measures?
Poland 2050 recently applied for a Belka tax suspension. - The abolition of the capital gains tax will raise interest rates on deposits, pulling excess money out of the market. It will be fighting inflation at its source, as opposed to the government focusing on defensive measures. - says in an interview with the magazine prof. Paweł Wojciechowski, former finance minister, currently head of the Polish Economic Council 2050.
In the aforementioned poll conducted by Rzeczpospolita, among other things, in favor of the abolition or temporary suspension of the Belka tax, Dr. Piotr Zoch from the Faculty of Economic Sciences of the University of Warsaw. In his opinion, this will raise the real rate of return on savings and encourage households to postpone consumption. - In this sense, it is similar to raising interest rates. The revenue from this tax is so small that I do not expect that the increase in the deficit as a result of its reduction will have a significant pro-inflationary effect. Joch explains.
Critics of Belka’s removal of the tax (10 of 26 economists polled by the newspaper) emphasize that it will primarily benefit wealthy households with large savings.
20 years of the Belka tax
Recall that the so-called Protein Tax was introduced in 2002 by the government of Leszek Miller, and its initiator was the then Deputy Prime Minister, Finance Minister Marek Belka. For the first two years, the tax was mandatory on profits from bank deposits and then was 20%. In 2004, the tax was reduced to 19%, but it also included income from investments in securities, i.e. capital income.
Belka himself did not comment on the abolition of the tax, but in a recent interview with Rzeczpospolita, he stressed that the fee should be maintained regardless of the economic situation.
Government spokesman Piotr Müller was asked about the government’s plans to abolish the Belka tax in early July in Polsat News. - We do not have such a solution at the moment government spokesman replied.
Source: Wprost
