– The reform of 2011 year is the direct additional VAT burden of households of about 4.4 billion zł per year – indicates in an interview with news agency Newseria Business Michal Myck, director and member of the board of the Centre for Economic Analysis.
– The effect of maintaining higher rates at 8 and 23 percent. over the next three years (2014-2016) is to increase the load of approx. 4 billion zł.
Duty to withhold VAT lies on businesses, but that consumers bear the final cost. In 2011, the government decided to temporarily raise the rate of VAT from 22 to 23 per cent., And a reduced rate of 7 to 8 percent. Also introduced a rate of 5 percent. on unprocessed food, the expiry of the transitional periods in the EU. In November 2013 it was decided to maintain these rates for the year 2016.
In absolute terms, according to the report of the Institute CenEA, changes in the amount of VAT in the highest degree to the richest households for which the load increased by 35.4 zł per month (in the group of the poorest – 7.6 zł). But comparing these increases in revenue, you can see that in the poorest group of households accounted for 0.8 per cent increase. disposable income, while the richest – 0.3 percent.
The level of VAT burden of individual households depends primarily on the amounts spent on routine maintenance, as well as the structure of expenditure (which part of the income of households spend on goods loaded each of the tax rates.)
– Monthly households spend an average of 325 zł under the VAT charge and relative to the total expenditure is the average rate of approx. 12.5 percent. – Myck explains. – Conversely, the burden tax on goods and services varies depending on the amount of household income. Maximum refers to the first decile group, which is the poorest 10 percent. population, where the rate is discharged on average approx. 16,3 per cent of income. On the other side of the scale, among the 10 percent. the wealthiest households, it is only about 7 percent.
According to analysts CenEA on the amount of VAT paid is also influenced by the demographic structure of households. While paying a higher tax the larger and having children, but it does not grow in direct proportion to the number on the holding of people.
– Comparing eg. Single to double farm, the VAT increase is about 15 percent. in the case of larger farms . But it does not grow further with increasing both the number of adults and children. Households with children pay more VAT – about 9 per cent., While the height of the load is not dependent on the number of children and their ages – Myck says.
As pointed out, when there’s more children in the household or their age is varied, the structure of consumption goes more towards the goods and services covered by the lower tax rates, and therefore the total load VAT roughly remains at a similar level.
– It seems that the more efficient economically solution is a single rate of VAT – says director CenEA. – Supported by a number of arguments concerning the effectiveness of both consumption and production. Such a solution to a greater extent obciążałoby farms with lower incomes, so should think about compensation for these losses, eg. In the form of reductions in the income tax system or benefits.
Center Estimates suggest that in order not to increase total burden of households, single VAT rate would be 15.5 percent. However, if it is higher, the additional revenue to the budget would cover the cost of any allowances and benefits for the poorest groups.
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Value-added tax is one of the most important sources of income for the state budget. In 2013,. The proceeds of this account constituted 41 percent. the total income of the public finance sector, while 47 per cent. tax revenues. Last year, the budget revenues from VAT exceeded 120 billion zł.
Maintaining higher VAT rates will cost households zł 4 billion per year
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