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Local government treasurers appeal to the authorities to stop destabilizing finances

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After changing taxes, local governments lose billions of zlotys. Treasurers from 12 Polish metropolises show specific calculations: how much the cities lost from reduced PIT revenues and what they could be spent on. Local government officials sent an open letter with an appeal to those in power to stop ruining the budgets of cities, towns and communes. Material of the magazine “Polska i Świat”.

Treasurers of 12 Polish cities met in Wrocław to show how local government budgets have changed in recent years. – These financial problems result primarily from the anti-city, especially anti-local government, policy of the current government – says Marcin Urban, treasurer of Wrocław.

The city calculated that the tax changes introduced by PIS, Wrocław lost PLN 1.2 billion in four years. The list of what could be done for it is long. – We could make at least three large road investments, for example the much-needed part of the Śródmieście bypass – points out Marcin Urban.

Wrocław lost PLN 1.2 billion in four yearsShutterstock

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Cities are counting their losses

When Arkadiusz Mularczyk from Solidarna Polska argues that “such large public funds have never been transferred to local governments from the government in the history of Poland”, the treasurer of Łódź, Krzysztof Mączkowski, sees it completely differently.

As he calculated, this year alone due to tax changes, the city lost PLN 635 million. Adding the government subsidy, the result is almost half a billion, which was not transferred to Łódź’s account. – If it weren’t for these tax changes, we would have already completed the renovation and modernization of basic roads and city arteries – he claims. The condition of roads in Łódź is still the city’s Achilles heel.

– If anyone thinks that the tax cut, including for the youngest, i.e. up to 26 years of age, but also for everyone else, through the tax-free allowance and so on, is a burden for anyone, I suggest to everyone who met there to go to their residents and tell them that they want higher taxes for them, says Waldemar Buda, Minister of Development and Technology.

– Tax changes can be introduced for people, but fairness requires appropriate compensation, if this also applies to local government finances – points out Krzysztof Mączkowski.

PiS follows suit. He has just abolished the tax on the purchase of the first apartment from the secondary market. – The exemption that the government has introduced for the purchase of the first apartment will unfortunately result in a real decline in the current income of our local governments – announces Dorota Pudło-Żylińska, treasurer of Szczecin.

Gdańsk lost PLN 800 milliontvn24

Due to budget shortfalls, Gdańsk has to take out loans. City treasurer Izabela Kuś calculated that the city lost PLN 800 million over the last four years due to tax reforms. – This is the equivalent of 15 primary schools – emphasizes Izabela Kuś.

Treasurers appeal to the authorities to stop destabilizing finances

Unions of metropolises and towns, as well as associations of cities, counties, communes and voivodeships, sent a letter to the government with an appeal to stop destabilizing local government finances with subsequent changes to the law.

They emphasize that the intention to treat local government units unequally and to deprive some of them – arbitrarily selected ones – of the right to full share in corporate income tax revenues retroactively for 2022 is particularly unacceptable.

– The state and local governments “lose” from this to varying degrees. that is, they have less influence. We, as a state, do not go to treasurer collections, we do not say that the state is lacking, says Waldemar Buda.

The policy on this matter may change when those in power lack the votes of voters.

Main photo source: Shutterstock

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