VAT will finance the modernization of the Polish Army? advanced taxes will stay longer [COMMENTARY]

As long as defence spending exceeds 3% of GDP, VAT rates should stay at levels 8 and 23 percent," said Deputy Minister of Finance Artur Soboń on Thursday. Given the very wide scope of needs of the Polish Armed Forces, as well as plans to increase their numbers, in practice this means that the stakes will stay for longer. The amendment to the VAT rules will only change the formal justification for maintaining higher rates than in force a twelve years ago, which does not change the fact that maintaining army backing of more than 3% of GDP becomes a necessity in the current situation.