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Polish Order – Taxes. Relief for working pensioners. How much will it be?

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The new tax relief for working people of retirement age is to encourage them to continue their professional activity. – The popularist slogan to lower the retirement age managed to win the election. Now the government will try to raise the retirement age at all costs – Oskar Sobolewski from the Pension Institute assessed in an interview with TVN24 Biznes.

On Thursday, the Public Finance Committee dealt with the amendments tabled on second reading to the draft amendments to tax lawswhich introduce solutions related to the Polish Order. One of the accepted proposals is an additional allowance for working people who have reached retirement age and have not decided to retire.

Relief for working pensioners – how much will it be?

The chairman of the Public Finance Committee, Henryk Kowalczyk, stated during the Thursday meeting that the relief for working people of retirement age will amount to PLN 115,000. It would also include the increased tax-free amount of PLN 30,000. – They will pay tax if they earn more than PLN 115,000. Two reliefs add up, he explained.

During the meeting, Dariusz Rosati from the Civic Coalition said, however, that the provision regarding the relief for pensioners was not properly specified. – I just wanted to make sure that we have an accumulation of both of these amounts. The text of this amendment does not follow (ed.) Unequivocally. It is said that in the case of women and men, up to the amount not exceeding PLN 85,000 in a tax year. I understand that it is about PLN 30,000 plus PLN 85,000, but maybe it should be formulated a little differently? It does not follow from the text at all, he noted.

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Henryk Kowalczyk replied that the provisions concerning, for example, relief for young people up to 26 years of age, were written in a similar way. – We will not modify the patch at this stage. If there are any interpretative doubts, the intention is completely clear, the Senate still has the option of clarifying it, he stated.


Relief for pensioners. Expert: changes in chaos

Oskar Sobolewski from the Pension Institute also points to the uncertainties related to the final shape of the tax relief for working people of retirement age.

– It was dealt with in such chaos that we do not know what the amendment looks like. Moreover, chairman Kowalczyk admitted that he realizes that it is written so inaccurately that a correction will be necessary. Therefore, it is not known whether this relief will be at the level of PLN 85 or 115 thousand – he said in an interview with TVN24 Biznes.

As he added, assuming that the new tax relief is at the level of PLN 115,000, it would be “a certain stimulus that may motivate to further work”. At the same time – as Sobolewski notes – the government first lowered the retirement age, and now it will prepare further solutions to encourage retirees to remain in the labor market.

– The popularist slogan to lower the retirement age managed to win the election. However, in the long run, in the Polish reality, the situation of the social security system, the average pension, life expectancy – it is impossible to function in such a system. Therefore, the government will try to raise the retirement age at all costs with such half-measures. However, he would not dare to make such a direct increase in the retirement age, because the electorate will not “buy it” – he said.

– However, I think that this is one of the many proposals and solutions that will appear in the near future to encourage these people to stay in the labor market. Especially since most of them decide to retire quickly. Eventually they retire and come back to combine work and retirement. Systemically, however, it is necessary to raise the retirement age, he emphasized.

According to Sobolewski, the introduction of further allowances to the Polish Order is also a recipe for low public support for the tax changes enshrined in it. As parliamentary amendments, in addition to the relief for working people of retirement age, there were proposals to apply allowances for the middle class also for some entrepreneurs and relief for large families, with four and more children.

– I suspect that the results of the Polish Order are so low that the ruling coalition decided to look for these additional beneficiaries, introducing concessions for pensioners, families with many children or entrepreneurs. It is evident that with additional bonuses it must be shown that this Polish Order is good, although it is not good for everyone. As for the act, which was allegedly prepared for so many weeks and months, it can be seen that there are more errors in it than such substantive content – he assessed.

Main photo source: Shutterstock

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