However, there is no reason to be euphoric, since the PLN 760 relief applies to the tax base. This means that PLN 760 may be deducted annually from income before tax. For people paying tax at a rate of 19%, the amount refunded under the relief will actually be PLN 144.40. After the introduction of VAT, users of the cheapest Neostrada TP service will pay PLN 11.36 more per year, while users of CDI Dialog will pay as much as PLN 75.25 more.
Internet tax relief is another, rather unsuccessful attempt to reduce the prices of Internet services. The MPs’ proposal was immediately criticized by the Ministry of Finance, which believes that this solution will further complicate the tax system.
An earlier measure, exempting these services from VAT, proved contrary to the requirements of the European Union, so Internet services will soon be taxed again. In accordance with EU recommendations, Internet access services must be subject to the standard 22% VAT rate.
The Senate will now consider the Sejm’s amendments to the tax law.