New global fiscal order is needed says Polish PM

Mateusz Morawiecki has called for the construction of a new global fiscal order to help deal with a “pandemic of indebtedness.”

The Polish prime minister also said restrictions on tax havens were needed to stop companies from moving taxable money abroad.

"The pandemic of indebtedness in Europe has significantly changed the situation, and more and more people have become aware of the fact that a new global fiscal order has to be built," Morawiecki said in an article published by the French daily L'Opinion.

"We are starting a debate about international taxes," he said, adding that it should also answer whether corporations should pay taxes where they generate their income.

"We are also asking whether it is fair that it is possible not to pay taxes in some EU countries," he stated, adding that, so far, these topics had not been treated seriously. "But the pandemic of indebtedness in Western Europe has changed the attitude towards this subject."

The Polish prime minister said that restrictions imposed on tax havens should also be seen as an element of modern industrial politics, since a ban on money transfers abroad from companies "increases in a natural way the level of private investments."

Morawiecki criticised international laws which have made it possible for tax havens to operate. "Tax havens help improve economic results of corporations, but are incompatible with the most fundamental elements of justice, since they deprive communities, where global firms earn money, of their due taxes."

"Poland has been calling on Brussels to work out a just VAT and CIT tax system," Morawiecki said, adding that Poland had been bringing up this problem since 2015, and not only when new financial scams occurred.

The article written by the Polish prime minister has been published in the weekend issue of the daily L'Opinion as part of a "Telling Poland to the World" series sponsored by the New Media Institute, in cooperation with the National Remembrance Institute and the Polish Foreign Ministry.