In Poland the government intends to raise the standard rate of VAT again by 2017. The standard rate has already been raised to 23% from January 2011 as a consequence of the financial crisis. Although Poland did not undergo a recession after the crisis the government needs to raise more revenue as a result of its agreement to conform to the criteria for Euro currency convergence. This means that the budget deficit must be kept below 3% of GDP. The deficit for 2014 is likely to reach 4.3% and further government revenue must therefore be raised in order to keep borrowing to a minimum. The 3% target is however expected to be reached in 2015 as a result of cuts in government spending.
