What was the subject of the Social Dialogue Council meeting in October 2021?
On October 20, 2021, a plenary session of the Social Dialogue Council was held, chaired by Marlena Maląg, Minister of Family and Social Policy.
In the first part of the meeting, Sebastian Skuza, the Secretary of State in the Ministry of Finance, presented the main assumptions of the proposed changes to tax laws as part of the Polish Deal. He announced that he would pursue a friendly tax policy and ensure a better position in the race for investments for Poland. Among other things, he pointed to the increase of the tax-free amount to PLN 30,000. PLN and an increase in the value of the income from which the second tax threshold begins to the value of PLN 120 thousand. zloty. He pointed to plans to introduce a number of family allowances, such as a tax allowance for single parents; tax exemptions for families with at least four children; preferential taxation of the spouses’ income from the year in which they got married, or the so-called PIT 0 for retirees who continue to work. He said about the change in the amount of the health insurance contribution and the inability to deduct it from income tax. He emphasized favourable conditions for people returning from abroad who would like to run a business in Poland and income tax exemption for people with monthly earnings up to PLN 2,500. As a result of his desire to improve the fairness of the tax system, he announced an increase in taxes for the highest earners. Deepening the issue of the second tax threshold, he said that the income surplus above the amount of PLN 120,000 PLN will be subject to 32% tax. Specifying the issue of the relief for the so-called 4+ families, he pointed out that it would apply to families with underage and adult children in the case of education by children up to the age of 25, or families with adult children, if they receive care allowances or social pensions. . He informed about plans to introduce a relief for the owners of historic properties covered by the conservator’s care, who pay a flat or lump sum tax. The discount would be granted on payments to the renovation fund for a building entered in the register of monuments. He pointed to the change in the amount of health insurance for entrepreneurs who pay with a tax card or a lump sum, he also said that entrepreneurs would be exempt from tax for 4 years if they moved their business to Poland, and their income could not exceed 85.5 thousand . zloty. He noted that the Polish Deal would provide for reliefs in the research and development sector and additional tightening of the tax system.
Trade unions indicated that the government side did not respond to the previously presented comments of social partners (especially in the context of the new structure of the health insurance contribution) and emphasized the need to introduce different legal regulations for enterprises providing work for disabled people and creating protected jobs. The trade unions raised the issue of excluding pensioners from the so-called middle class relief and outlined the need to reform public employment services, as well as poviat labor offices. Employee organizations responded positively to lowering taxes for the lowest earners and put forward a proposal to introduce additional tax thresholds that would be more transparent than the algorithms set by the Ministry of Finance. Trade unions drew attention to the negative impact of the Polish Order on pensioners receiving a benefit higher than PLN 5,000, which may be a factor demotivating people to work longer. They also stressed that one-off rewards or bonuses could take away some middle class benefits from some workers. Trade unions suggested conducting a pro-family policy by helping young families to obtain housing and decent earnings. The trade unions asked about the possibility of introducing further amendments to the Polish Deal project and about the possibility of conducting an evaluation after one year of the program’s operation, as well as about the method of linking the National Reconstruction Plan with the Polish Order.
Employers’ organizations emphasized the need to reform the tax system, however, they found the way of implementing the reform proposed by the government unsatisfactory. The employers’ side called for deepening the transparent dialogue and expressed concern about the additional burden on entrepreneurs. Employers forecasted the possibility of limiting investments and modernization processes after introducing solutions proposed by the government. Organizations associating employers have called for the introduction of an annual vacatio legis of the Polish Order and for keeping a stable law. Employers expressed doubts about persuading entrepreneurs to new investments through tax reliefs and indicated a group of people with income above 11,000. gross PLN as an opportunity and a vehicle for economic development. Employers’ unions drew attention to the significant increase in the health contribution from 2022 and the slow increase in GDP expenditure on the health service until 2027. Employers emphasized that people working under a contract for specific work or farmers may be privileged in terms of being charged with health insurance. Employers’ organizations had a negative attitude to the liquidation of the tax card and asked about the further fate of the Polish Deal.
Minister Marlena Maląg, thanking the members of the Council, informed that the term of office of the government party was coming to an end, and that Andrzej Radzikowski, President of the OPZZ, would be the new Chairman of the Social Dialogue Council.
Projekt otrzymał dofinansowanie z Norwegii poprzez Fundusze Norweskie 2014-2021, w ramach programu „Dialog społeczny – godna praca”.
