Thursday, March 5, 2015

Polish households will pay 4 billion zł per year. All … – Modern Company

The poorest household must pay more than 16 percent. their income! Note that in the group of 10 percent. richest share drops below 7 percent.

– The reform of the 2011 direct means additional VAT burden of households in the amount of about 4.4 billion zł per year – indicates in an interview with the news agency Newseria Business Michal Myck, director and member of the board of the Center for Economic Research (CenEA). – The effect of maintaining higher rates of 8 and 23 percent. over the next three years (2014-2016) is to increase the load of approx. 4 billion zł – he added.

The final cost borne by the consumers

Obligation VAT discharge 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. Decided to maintain these rates by the end of 2016.


 

The poorest most burdened

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.

Loads VAT

Level VAT burden of individual households depends primarily on all of the amounts spent on routine maintenance, as well as the structure of expenditure (that portion of income households spend on goods loaded with different rates of VAT). – 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 percent. income. On the other side of the scale, among the 10 percent. the wealthiest households, it is only about 7 percent. – He added.



What affects the amount of tax?


 
 

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 is 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.

One bid will solve the problem?

– It seems that it is more economically efficient 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.

From the Center estimates that, for does not increase the 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.


                     


                                      newseria.pl
                             

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