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Poland's two leading centre-right parties agreed on Monday that their probable future government should lower and simplify taxes, but divisions over a possible flat rate remain in the run-up to a September 25 general election.
The economically liberal Civic Platform (PO) wants a flat rate tax code, unifying personal, corporate and value added taxes at 15 percent - a similar reform to one which rejuvenated the economy of neighbouring Slovakia.
The PO's conservative allies, Law and Justice (PiS), want to lower the tax burden but maintain a progressive tax code.
"If the PO talks about simpler and lower taxes, then this is exactly what we want," PiS senior deputy Kazimierz Marcinkiewicz told a debate on economic policy.
Marcinkiewicz's declaration, made amid loud calls by leftist groups seeking to drive a wedge between the probable future coalition partners, highlights the centre-right parties' joint view that economic issues will not divide their government.
However, he made clear differences remained over tax reform. "But if PO is talking about (flat tax rates at 15 percent), while today's effective personal income rate is at around 13 percent, then we certainly cannot and will not agree to higher taxes," he told the debate hosted by private news channel TVN24.
The PO's Jan Rokita, tipped to become prime minister if his party comes ahead of PiS, reiterated plans to give the poorest tax breaks to ensure they do not lose out on flat rate taxes.
"Our flat tax proposal, on which we will for sure reach an understanding with PiS, is such that every taxpayer will pay less than now or the same," said Rokita, also present.
Opinion polls show the centre-right winning a majority in the next parliament with Poles angry about persistently high unemployment and numerous sleaze scandals during the leftists' four-year stint in power.

Copyright Reuters, 2005

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