August 9 this year a meeting of the Social Dialogue Council was held, during which the draft act amending the act on personal income tax, the act on corporate income tax and some other acts prepared under the Polish Deal program was discussed. The meeting was chaired by the Chairman of the Council, Deputy Prime Minister Jarosław Gowin. Moreover, the government was represented by: Jan Sarnowski – Undersecretary of State in the Ministry of Finance, Olga Semeniuk – Undersecretary of State in the Ministry of Development, Labor and Technology and Andrzej Śliwka – Undersecretary of State in the Ministry of State Assets.

Deputy Minister J. Sarnowski presented the details of the tax reform, which will consist of three packages. The first package will include increasing the tax-free amount to PLN 30,000. PLN, changes in health insurance and raising the second threshold to 120 thousand. PLN and new flat rates. The second package includes, among others reliefs and simplifications targeted at specific categories of entrepreneurs: small and medium-sized companies, large international holdings. The third package is a package of sealing the tax system, which will be a very important path to finance this reform. He informed that about 67.1% of employees working under an employment contract and 89.8% of people entitled to old-age and disability pensions would benefit from the tax changes included in the Polish Lada. He presented a package of innovations relief: relief for innovative employees, relief for a prototype, relief for robotization and R&D and IP Box relief.

Employers pointed out that it is not justified to introduce tax changes in a period when it is not known if and when the threat of a pandemic will end. It was emphasized that the proposed changes would complicate the tax system and thus the opportunity to simplify the tax system by implementing a comprehensive reform would be wasted. The proposed changes have a redistributive purpose to retirees and low-wage earners and are unfavorable for businesses. According to employers, labor costs will increase primarily for people with higher education.

The trade unions positively reacted to the increase of the tax-free amount to PLN 30,000. zloty. There is concern about the fact that it is not possible to deduct the health insurance contribution from the tax, which will increase the fiscal burden. According to the unions, the entire health premium should be directed to the National Health Fund with information on what the funds will be allocated to. Attention was drawn to the issue of introducing changes that would enable an increase in employment under an employment contract.

Source: http://www.dialog.gov.pl/aktualnosci/art,1269,posiedzenie-plenarne-rady-dialogu-spolecznego.html

Projekt otrzymał dofinansowanie z Norwegii poprzez Fundusze Norweskie 2014-2021, w ramach programu „Dialog społeczny – godna praca”.