The bill proposed by the Confederation that would raise the tax-free threshold to at least PLN 60,000 passed with no objections and was referred to the parliamentary finance committee. Instead, a motion will be voted on to have the committee prepare a report on the matter within a month.
During the first reading of the draft amendment to the Income Tax Act, a debate occurred on Wednesday afternoon. The bill, introduced by Confederation MPs, seeks to raise the tax-free amount for everyone to a figure equal to twelve times the minimum wage, but not less than PLN 60,000 zloty.
With no objections, the project will proceed to the Finance Commission. The Confederation’s proposal to have the commission submit a report within a month will go to a vote.
Presenting the project, Przemysław Wipler of the Confederation stressed that this was a test of the Civic Coalition’s intentions. He noted that its leader had announced a raise to PLN 60,000 and argued that the move would reassure voters who supported KO. He warned that if KO MPs voted against the Confederation project, it would appear they misled their voters, given earlier promises.
The Confederation spokesperson acknowledged that the plan would cost billions from the state budget, but claimed the money would remain in taxpayers’ pockets.
Poles decide for themselves how best to spend their money
– he asserted.
The speaker argued that the proposal would shield the poorest and those earning the minimum wage.
The PiS club backed the Confederation project. MP Zbigniew Kuźmiuk recalled that PiS had previously submitted a similar measure to the Sejm. He noted that PiS reduced taxes for citizens in the prior term and cited reductions such as the personal income tax cut to 12%. He reminded that the tax-free amount was raised tenfold under the previous government, up to 30 thousand PLN per year, and the second tax threshold was increased to PLN 120,000. He argued these steps left more than 50 billion złoty in taxpayers’ pockets.
Representatives from KO, Poland 2050 – Third Way, PSL – Third Way and Left highlighted the Confederation proposal’s shortcomings.
KO MP Katarzyna Kierzek-Koperska argued that while her group has not forgotten the demand for a free quota, it cannot be done within a “limited budget.” She calculated that the Confederation plan would cost PLN 52.5 billion in 2025 and PLN 48 billion in 2024. She stressed that, before increasing the tax exemption, local governments should be protected from losses in revenues that also come from PIT. She noted that the Ministry of Finance is crafting a comprehensive law on local government funding and warned that the Confederation project could push local governments into financial trouble.
Taking a responsible approach to public finances, she said, this project cannot be supported (the Confederation – PAP project).
– summarized Kierzek-Koperska.
Zandberg’s point of view
Mirosław Adam Orliński (PSL – Third Way) and Adrian Zandberg (Left) spoke similarly. Orliński warned that the plan could collapse local government finances, while Zandberg cautioned that the Confederation proposal would hit small municipalities most hard.
The central issue, according to opponents, is that the bill creates a large budget hole without detailing funding sources. They asked whether pensions would be cut, health care queues lengthened, or taxes on food raised, noting the bill contains no mechanism for safeguarding funds from those municipalities most in need.
They argued that decent schools and functioning hospitals require continued funding for local governments, and that income tax tends to stay low in many municipalities. The proposal, they claimed, would strain small towns because there is no protective mechanism for them.
Elżbieta Burkiewicz (Poland 2050 – Third Way) criticized the authors for overlooking lump-sum and linear taxpayers, and signaled that her party would propose more favorable options in family PIT changes or health insurance premium calculations. Still, she chose to continue working on the Confederation project.
Deputy Finance Minister Jarosław Neneman announced that the government has not taken a position on the Confederation project.
There is only the stance of the Ministry of Finance: it does not support the bill. In due course, a separate proposal will be prepared and analyzed from the start.
Prime Minister Donald Tusk stated on Tuesday that this year the tax-free threshold of PLN 60,000 cannot be introduced due to budgetary constraints. The increase in holiday pay was announced as part of a broader plan for the year.
He added that the project will be revisited next year to assess feasibility and potential implementation within the term of office.
The article also notes ongoing discussions about the broader federal approach to tax relief and local government funding.
mly/PAP
Source: wPolityce