Poland's tax-free income threshold of PLN 60,000 will not fit into 2026 budget
The Polish tax-free income threshold of PLN 60,000 will not fit into the 2026 budget, Finance and Economy Minister Andrzej Domanski said on the Polish public television channel TVP Info. He added that the government's proposed changes to the capital gains tax will be presented in the coming days.
"I think that a tax-free allowance of PLN 60,000 will not fit into the 2026 budget," said Domanski.
He added that the Ministry of Finance is working on introducing a tax-free amount of PLN 60,000.
"We are working on how to introduce the tax-free amount during our term in office," he said.
He pointed out that the Ministry of Finance will look at the bill to increase the tax-free allowance by President-elect Karol Nawrocki after he takes office.
"When President Nawrocki puts this bill on the table, we will see how it is written. We will see what sources of financing are presented in it,’ Domański pointed out.
He added that reducing the VAT gap will not be a sufficient source of financing for a higher tax-free allowance, as Nawrocki had previously indicated.
"We know that this is not a real source of financing. This is because our government closed the VAT gap in its first year in office, which in 2023 under the PiS government was over 13 percent, and we reduced it to below 7 percent, so there is simply not much room left for further closing of the so-called VAT gap," explained the head of the Ministry of Finance and Economy.
Minister Domanski also announced that the capital gains tax will not be completely abolished, and proposals on this matter will be presented in the coming days.
"It (the capital gains tax - PAP) will not be abolished, it will be limited, a solution will be introduced which, as we said earlier, will mean that savings and investments up to PLN 100,000 will not be subject to the capital gains tax, but we will provide details of this solution in the coming days," he announced.
mcb/ han/