Poland's President proposal for 'zero PIT' would mainly benefit highest earners, says FinMin
Polish President Karol Nawrocki's proposal for a 'zero PIT for families' would mainly benefit the highest earners, Finance and Economy Minister Andrzej Domanski assessed in an interview with Parkiet TV.
"Regarding the zero PIT proposal, I object to solutions that do not benefit the lowest earners but are clearly aimed at high earners. This is not the kind of economic policy we want in Poland. I thought the President would come up with something more refined," Domanski said.
"We will analyse the details and calculate the financial consequences, but I think this is a rather weak proposal," he added.
The presidential draft amendment to the personal income tax act, published on Monday, provides for an increase in the tax threshold from PLN 120,000 (EUR 28,176) to PLN 140,000 (EUR 32,872) and the introduction of zero PIT for income up to PLN 140,000 (EUR 32,872) in the case of parents of at least two children.
The draft was not accompanied by a justification or an assessment of the impact of the regulation. Thus, the estimated cost of the proposed changes was not indicated.
When asked what he thought about the President's proposal to reduce the capital gains tax (so-called Belka tax), Domanski pointed out that the finance ministry wants to build a culture of saving and investing, and that simply reducing the capital gains tax would not achieve this goal.
"Our aim was to build a system, a certain culture of saving and investing. In my opinion, reducing the Belka tax alone would not achieve this goal," the Finance Minister assessed.
Last week, Domanski announced that the government wants to introduce a Personal Investment Account (OKI), on which new investments by citizens up to PLN 100,000 (EUR 23,480) would be exempt from capital gains tax, including up to PLN 25,000 (EUR 5,870) in savings.
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