President Karol Nawrocki presented a draft amendment to the income tax, which introduces a zero PIT for parents of at least 2 children earning up to PLN 140 1000 per year. The proposal besides implies raising the taxation threshold for all from 120 1000 to 140 1000 PLN.
In an interview with Polsat News, the president justified his proposal with the request to support Polish families. "My task refers, of course, to any demographic crisis in Poland, but besides to the clear support of Polish families. Polish families must feel the support of the president of Poland, regardless of who makes the individual decision. Whether to start a household or not, due to the fact that this is not a task against anyone" - Nawrocki said.
Support for families with children
The president stressed that "if individual decides on children, they should feel the support of the state and the president." He besides announced that there would be specialists working in his law firm on demographic issues.
"I am glad that in my law firm and besides among advisors there will be specialists who deal with demographic issues, due to the fact that it is indeed a problem that we are beginning to feel, and which will be serious for Poland for the next decades" - he added. Nawrocki besides declared openness to the discussion of changes in 800+, including the simplification of payments to the wealthiest families.
Details of the taxation project
According to the proposal, the income taxation is to be 12 percent minus the amount reducing PLN 3600 in gross to PLN 140 1000 per year. Above this threshold, the rate will be PLN 13 1000 200 plus 32 percent of the surplus.
For parents, at least 2 children, the amount reducing the taxation at incomes below PLN 140 1000 will amount to PLN 16 1000 800. In practice, a household with 2 children will not pay income taxation up to PLN 280 1000 in full income.
Costs and benefits of changes
According to Grant Thornton's estimates, the most wealthy will benefit from changes. People with minimum wage will save about 75 PLN per month, while people earning 15 1000 PLN will gain 1,400 PLN per month.
Michał Myck of CenEA estimates the cost of a zero PIT proposal for parents of 2 children at nearly PLN 16 billion per year. expanding the threshold for all will increase costs by another PLN 3 billion per year. The task is to enter into force from 1 January 2026.
Sources used: "PAP" Note: This article has been edited with the aid of Artificial Intelligence.
