On the 1st of June 2017 upon the invitation of the President-Janusz Cieślak the guest of the European Business Club Poland was the Chairperson of the Parliamentary Committee for Support of Entrepreneurship and Economic Patriotism, MP Adam Abramowicz.
When introducing the guest President Janusz Cieślak emphasized that since 1990 Adam Abramowicz is an entrepreneur.
MP A. Abramowicz introduced a new proposal of changes in the tax regulations upon which the parliamentary committee worked under his leadership. The project is called the “Dzierżawski Bill”l and is a modified version of the project of reforming the public finances worked out by Krzysztof Dzierżawski in 2001. It includes major reform in the tax system in Poland and its main changes are the following:
-major simplific ation of tax regulations and limitation of tax administration;
-elimination of contributions for ZUS, PIT and CIT as well as introduction of one tax for natural persons conducting business activity in the amount of 25% of the whole of pay fund;
– lowering of cost of labour by the proposed tax changes;
– an increase in remuneration for employees by 25%;
– introduction of 1.5% turnover tax for CIT payers;
– lowering of the contributions to ZUS up to the level of 550 PLN monthly;
– introduction of 0,49% tax rate for revenues of banks and financial institutions as well as 1,49% for companies;
-taxation of payable dividends with a rate of 25%
-introduction of tax rates from revenue without the possibility of deduction of any tax deductable expenses. Tax rates would vary depending on the type of activity and would range from 3% to 15%.
– elimination of so called „tax optimalisation” and introduction of a rule that all companies pay taxes.
– elimination of the pathology of obtaining VAT for ex ample in connection with VAT carousel;
– elimination of the escaping of paying CIT
During his speech Adam Abramowicz stated that the current tax system is too complicated and ineffective. This causes various abuses and situations in which some companies pay taxes and other effectively avoid them. At the same time he emphasized that the bases of functioning of a strong state is an efficient economy and in Poland about 60% of income in the budget is worked out by small and medium companies. That is why it is the role of the State to support those companies and create such a tax system which will be favourable to them. At the end of his speech MP Abramowicz quoted the words of an American economist, the winner of the Nobel Prize in economy in 1976 Milton Friedman. He, during a lecture for the Civil Parliamentary Club given during his visit to Poland in 1989 said that “Poland should not follow into the steps of rich western countries because it is not a rich western country. Poland should follow the solutions which western countries had when they were as poor as Poland.”
Traditionally after the end of the Guest’s speech an interesting discussion started concerning topics especially interesting for entrepreneurs form the European Business Club Poland. To summarize the meeting MP Adam Abramowicz signed the Honorary Guest Book.