Poland plans major tax reforms and faces rising 2027 budget deficit

The Polish government is preparing significant fiscal and legislative changes. The Ministry of Finance has proposed a series of tax reforms, including raising the first PIT tax threshold from 120,000 PLN to 130,000 PLN and introducing a new 24% rate for incomes between 130,000 and 150,000 PLN. However, these changes are accompanied by the planned elimination of the long-standing internet tax relief and the expansion tax relief, while increasing benefits for blood donors and extending robotization incentives.

Regarding the national budget, the projected deficit for 2027 is expected to reach 282.6 billion PLN, driven by planned expenditures of 977.6 billion PLN against revenues of 695 billion PLN. The budget also anticipates a 3% wage increase for the public sector and an average inflation rate of 2.8%.

In the healthcare sector, the Ministry of Health is proposing increased transparency in medical tenders by publishing bidder data and prices. The Supreme Medical Chamber has expressed concerns that this could violate physician privacy and exacerbate staffing issues. Additionally, new regulations are being introduced to verify the list of free medicines for seniors, aiming to ensure competitiveness and prevent the state from indefinitely financing high-priced drugs that have cheaper equivalents. Finally, the 800 plus program is set to undergo automation starting February 2027 to simplify the application process for parents.