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President signs off on VAT rise


President Bronislaw Komorowski has signed into law a temporary increase in VAT rates effective from 1 January 2011.

The new rates will apply until the end of 2013. The basic VAT rate will rise to 23% from 22%, the reduced rate to 8% from 7%, and a new rate of 5% will be established for food, books and specialist magazines. The finance minister has reserved the right to reduce from 8% to 7% the VAT on certain items (such as non-specialist magazines) until the end of January 2011.

The legislation also reduces the state funeral allowance and raises public-transport subsidies for students and the blind.

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