To date, language courses have been VAT-free, because the European Union treats education as one of its top priorities. Industry representatives worry that imposing the tax could affect foreign language learning, because the one-fifth price increase would undoubtedly be borne by the students themselves.

According to CBOS data, Poles have cut back on extracurricular education expenses for their children by one-fourth over the past year. The Polish Association for Standards in Language Education (PASE) estimates that the overall number of language students in the Polish market has fallen by a similar percentage.

To remain competitive, language schools have cut costs and lowered prices. "If the tax change took place, many schools would have to cut expenses even more," said Agata Urbańczyk, a spokesperson for Lang LTC language school. In her opinion this may affect quality - schools which have already cut back on things like free education materials, internet access or coffee could go as far as employing teachers who are less skilled, but cheaper.

Magdalena Rowecka, vice president of PASE, pointed out that the proposed regulation is unfair because private lessons would remain non-taxable. The organization has been collecting signatures against the amendment on its website.

Last week PASE held a discussion on proposed changes. "Representatives of participating schools agreed that they will act together and try to convince the Ministry to keep the current tax exemption," Ms Rowecka told WBJ.

The proposed tax changes would probably not have a significant effect on corporate clients, since training expenses are tax deductible.

Marcin Poznań