Poland evaluates replacing Church Fund with voluntary tax deductions

The Polish government is evaluating a proposal to replace the existing Church Fund with a voluntary 2 percent personal income tax (PIT) deduction for religious organizations. While the mechanism would allow taxpayers to direct a portion of their existing tax liability to a chosen church or religious union, government analysis suggests it could significantly impact public finances.

According to a response from Paweł Bejda, Secretary of State in the Ministry of National Defence, the proposed tax deduction would likely result in higher costs for the state budget than the current Church Fund expenditures. For the 2026 budget, the Church Fund is allocated 272.56 million PLN. However, given that PIT revenues in 2025 were approximately 200 billion PLN, even moderate participation in a voluntary 2 percent deduction could lead to a massive reduction in state revenue.

Government working groups have analyzed four potential solution variants, but these have not yet received approval from the Minister of Finance due to the necessity of considering current budgetary constraints. The debate follows a petition to the Sejm's Committee on Petitions requesting a systemic analysis of the proposal.