Polish tax reform debate intensifies over family support and thresholds

Paweł Szefernaker, Chief of Staff to Karol Nawrocki, has criticized the current government's tax reform proposals, labeling them “short-sighted and anti-demographic.” Szefernaker argued that the government's plan to raise the second tax threshold from 120,000 PLN to 130,000 PLN only affects approximately 10% of Poles and fails to address broader demographic needs.

In contrast, the Nawrocki camp is promoting a “PIT zero. Family on plus” initiative. This proposal aims to exempt parents raising two or more children from income tax and raise the second tax threshold to 140,000 PLN. According to Szefernaker, these measures could leave Polish families with an average of approximately 1,000 PLN more per month. The plan intends to fund these tax breaks by tightening VAT and CIT systems to combat tax avoidance.

The government's current proposal, supported by Prime Minister Donald Tusk and Finance Minister Andrzej Domański, includes a 12% rate up to 130,000 PLN, a 24% rate for income between 130,000 and 150,000 PLN, and a 32% rate above that. To finance these changes, the government plans to increase the CIT rate from 19% to 22% for companies with annual revenues exceeding 50 million euros.