Yes, mine does.
In all seriousness, your head unit should have "MP3" stamped on it, just above the CD slot. If it doesn't - your head unit is not MP3 compatible. If that is indeed the case, I'd be looking in the boot next to the spare tyre to see when exactly your build date was.
You might be looking at an '05 rather than an '06.
Just as a question - have you encoded your MP3s with Variable Bit Rate? I'm not 100% sure if the Polo's head unit can handle that. I'd be surprised if VW swapped head units in the middle of a production run (assuming you do have an '06), and think it's more likely there might be an issue with the CD in question.
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