Not PLN 4.6 million, but PLN 5.6 million will the city spend on modernizing Primary School No. 1 and Kindergarten No. 8. The additional million zlotys from the municipal budget was the subject of a specially convened session of the City Council. The money will not go toward investment, but into the state budget. This is connected with the increase in the VAT rate from 7 to 22 percent effective May 1.

The City Will Pay Extra

After the tax increase, the councillors faced a dilemma: either abandon the investment, limit its scope, or provide additional funding. The last option was chosen. The city will add one million. The money will come from a grant that the city received in October last year from the ISPA fund.

More Surprises

Local government officials know that this is not the only surprise the government has in store this year. Everything indicates that the Municipal Sports and Recreation Centre, previously exempt from VAT, will pay 7 percent to the Tax Office for the services it provides.