Estimations made by “Rzeczpospolita” based on figures published by the Ministry of Finance show that increasing the income tax threshold to 8 000 PLN a year may mean that as many as 4 mln Poles may not pay income tax at all. Today, almost 20 mln people pay 18- and 25-percent personal income tax.
For the authors of the draft the key objective is for the people with income lower than the living wage (460 PLN a month) and eventually below 850 PLN.
However, not everyone is convinced by arguments for social support through the tax system. – If the threshold was lowered as the Ministry intends to were the case, a taxpayer with an income of at least 8 000 PLN a year, will get 74 PLN a month. However, those who have lower income, that is less than 670 PLN a month will not benefit fully – says Łukasz Kozłowski, economic expert of Employers of Poland. According to his calculations, a person with the lowest pension would get an additional 44 PLN every month, while a person on living wage – only 30 PLN.
– Such calculations show that an increase in income tax threshold announced by the president will not provide tangible support for the poor – says Bohdan Wyżynkiewicz, deputy chairman of the Market Economy Research Institute. – Therefore, I see no reason to implement the proposition, if the costs are so high – he adds.
PiS argues that the money need to finance it could be acquired through new taxes (for banks and supermarkets) and an improved tax collection rate. According to them, some of the money will return to the budget thanks to higher consumptions spending.