The government has announced changes to the tax act from the Polish Deal. The vast majority of Poles will not lose in these changes – said Paweł Mucha, advisor to President Andrzej Duda, in “Coffee on the bench” on TVN24. At the same time, he admitted that there was a need to introduce corrections reported by the Chancellery of the President. Meanwhile, opposition politicians propose to postpone tax changes. – This is a huge legal trash that hits hard-working people – assessed Borys Budka from the Civic Coalition.
At the beginning of 2022, changes in taxes entered into force, announced by PiS as part of the Polish Order. It is a 140-page amendment to the Personal Income Tax Act, the Corporate Income Tax Act and some other acts. After the tax changes from the Polish Order came into force, incl. the tax-free amount increased to PLN 30 thousand, and the tax threshold to PLN 120 thousand. At the same time, the tax deduction for health contributions has disappeared.
Polish order – changes
During the Friday press conference, Prime Minister Mateusz Morawiecki also announced that if someone at the end of this year notices that earning up to PLN 12,800 gross per month – in connection with the Polish Government – less than it was in 2021, then he will be able to count on compensation . – These are positive changes when it comes to the vast majority of Poles and the limit set by the Prime Minister (Mateusz Morawiecki – ed.) In his speech, that is the earnings limit of PLN 12,800. With his statement and changes to the law, the Prime Minister also guarantees that no person who earns less than PLN 12,800 gross, and this is the vast majority of Poles, will not lose on these changes – said Paweł Mucha, advisor to President Andrzej Duda.
– On the other hand, these changes benefit retirees and the most disadvantaged. These people get and will receive a higher salary – he added.
Mucha pointed out that “Mr. President (Andrzej Duda – ed.), When deciding on the Polish Order, immediately pointed to some gaps, the need to supplement and change, inter alia, the issue of single parents, in matters relating to the amount of pensions”. – These changes that appear in the Polish Lada correspond to what was reported by the President’s Chancellery – said the adviser to President Duda. As he noted, all this was reported “also at the stage of works, consultations, discussions and is consistently reported on”.
Mucha was asked why President Duda signed an act that did not take these suggestions into account. – If today we say that the tax-free amount is raised to PLN 30,000 – millions of people benefit from it, if we say that the second tax threshold is raised to PLN 120,000, millions of people benefit from it. Of course there is a need for corrections and changes and this correction and change is carried out – he replied.
– I am happy with the declaration of the prime minister, because I think that it is also a matter of a certain amount of justice when it comes to the redistribution of the national income – added Paweł Mucha.
Bolesław Piecha from PiS, speaking about tax changes from the Polish Order, noted that “there has been a revolutionary change in Polish taxes”. – This change had one, and still has one, main goal, that is to support those who are not doing well in Poland – he emphasized.
At the same time, however, he admitted that he met with voices about losses as a result of the entry into force of the Polish Deal. – During my work in the deputy’s office, I meet with pensioners, widows, single parents, that the proposed solutions (…) even lowered their salaries. I am glad that the Prime Minister reacted as soon as possible and introduces some kind of legal solutions that will eliminate the disadvantages of this system – assessed Piecha.
– I believe that these corrections, which will appear soon, however, these matters, these mishaps and bad interpretation of the law or bad provisions will be eliminated – he added.
Taxes 2022 – a proposal to delay changes in the Polish Deal
In the opinion of the PiS MP, tax changes should not be postponed in the Polish Deal. – I guess this is not the time to step back. I believe that these basic changes, i.e. the tax-free amount and the second tax threshold, are worth considering, worth supporting – said Bolesław Piecha.
Although, as he admitted, he will lose himself due to tax changes from the Polish Deal. – I personally will lose and I do not have a grudge against the prime minister or the government – said the PiS MP, adding that he did not know what the exact loss would be in his case. – It’s hard for me to say, because I’m also a pensioner. I’m 68 so I’m in a slightly different group. I will lose and I always dutifully settle accounts with the tax office, paying the amount that I have to pay. It hurts, because everyone does not like having money out of their pockets, but it is my duty to the state to be solidarity and to support those who are not as good as me, colloquially speaking – said Piecha.
Borys Budka from the Civic Coalition assessed that the tax act from the Polish Deal “is a huge legal trash that hits hard-working people”. – PiS has once again shown that if something is done suddenly, in several dozen hours, the worst solutions come out. No valid comments from the opposition were accepted, and they did not want to improve the issue of, for example, joint accounting for single parents, reminded Budka.
– They struck at entrepreneurs, who are additionally affected by the crisis, mainly related to the enormous prices of energy carriers, and today the Prime Minister’s great hypocrisy is to pretend that there is no tax increase. Of course, the taxes were increased simultaneously with the introduction of the free quota, stressed the chairman of the KO parliamentary caucus. In Budka’s opinion, “absurd solutions must be thrown away immediately”. – Leave the amount tax-free, leave a higher second tax threshold – we’ve talked about it from the beginning – he added.
Urszula Pasławska from the Polish People’s Party is of a similar opinion. As she stated, “Prime Minister Morawiecki is bravely today fighting the problems that he created himself”. – I think that today there is no other option but to liquidate the law on the Polish Order and throw it into the bin, certainly leaving the issue of the tax-free amount – Pasławska pointed out.
Artur Dziambor from the Confederation pointed out that last year only Italy was ahead of Poland when it comes to the level of complexity of the tax system among OECD countries. – We laughed then that there must be quite a chink there, but it turns out that it is possible to win this competition and introduce two different tax systems – noted Dziambor.
In the opinion of the Confederation MP, “this cannot be improved”. – The best idea would be to withdraw from it, but quickly pass the emergency postponement of these changes for at least a year or two at the next session of the Seym, so that the government could correct everything that failed there – said Dziambor.
According to Adrian Zandberg from the Left, the rulers “screwed up” the tax reform of the Polish Deal. – There were nice, interesting announcements, but there is nothing great from these announcements – assessed the MP. “It’s not a revolutionary change, a lot of unnecessary chaos, and we don’t have to go back or stand still, we just have to move forward and build a normal European progressive tax system,” said Zandberg.
Main photo source: TVN24