Changes in property taxes. This could cause a storm.

The Ministry of Finance has prepared a draft amendment to the Local Tax and Fees Law. One of its elements is: Introducing a new definition of building and structures for tax purposesAs we read in the Leviathan Union opinion on Tuesday, “the new definitions will certainly expand the scope of property taxes.”

Behind the buildings, A large number of tech devices worth billions of dollars will also be taxed. The amount of additional revenue for local government units (just over PLN 8 million) indicated in the assessment of the regulatory impact of the bill is completely different from the estimates of our companies indicating that The new burdens related to this tax may amount to several hundred million zlotys.“- said Przemysław Pruszyński, Director of the Tax Department of the Lewiatan Federation, quoted by the opinion.

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According to the two states, taxation of technical devices, all wired and wireless communication networks with terminal devices, and energy devices used to produce ecological electricity is prohibited. “Totally unacceptable”.

– In our opinion, the devices referred to should be subject to a 2% construction tax. It will lead to a suspension of the energy transition and ICT. This will make such projects unprofitable, limit new investments, and many already implemented projects will be liquidated, said the director of the Tax Department in Liuyatan.

– Removing the tax exemption for rail freight stations also conflicts with national climate and transport policies and EU policies. It will have a negative impact on the profitability of investments in greener multimodal, intermodal and combined transport, he added.

In Leviathan’s opinion, we read that the changes to the property tax proposed by the government “contradict the statements regarding support for the country’s economic development, the expectations of society and Poland’s commitments in the international arena, in particular with regard to the pursuit of climate neutrality.” Leviathan appreciated that “Taxing buildings on their initial value (2% per annum) is an anti-development and anti-investment tax.”

“Replacing old infrastructure with new ones entails a significant increase in the property tax burden. However, when deciding on multi-million dollar expenditures, companies must calculate that in 50 years they will be obliged to pay twice the amount of the investment in taxes. Therefore, it is completely unacceptable to expand the definition of construction in relation to existing investments and to introduce such significant changes with minimal legal authorization,” we read in the opinion.

I add that the effect of adopting the proposed amendment will be: A significant increase in property tax on businessmen.