Poland's government is preparing changes in taxes. The Ministry of Finance proposes to lower the personal income tax rate down to 12% and to scrap the so-called middle class relief. Also proposed was a return to the preferential settlement of a single parent with a child. The changes are to come into force starting 2023, but they will be effective retroactively from July 1, 2022. According to Prime Minister Mateusz Morawiecki, the reform could increase the budget deficit by 0.5 percentage point.
Poland's Prime Minister Mateusz Morawiecki on Thursday proposed legislation to lower the personal income tax rate from 17% to 12% in response to the economic impact from the conflict in Ukraine.
When asked how much the reforms would cost, he said that it could increase the budget deficit by half a percentage point.
"Due to the negative influence of the conflict in Ukraine, the government is planning changes to the tax system which will leave taxpayers with around 15 billion zlotys more in their pockets. However, the budget deficit could go up by about 0.5 of a percentage point," Morawiecki said on Thursday.
He added that a tax exemption for the middle class, which had faced earlier criticism for its complexity, would be eliminated.
Źródło: TVN24 News in English, Reuters
Źródło zdjęcia głównego: KRYSTIAN MAJ/KPRM