From the very beginning, the income tax threshold was one of the key topics of the election campaign. The ruling of the Constitutional Tribunal should contribute to speeding up the pace of legislation works - which will lead to a higher threshold.
During the campaign, many ideas for changes in regulations pertaining to the tax threshold were raised. Despite the fact that political parties had diverging views on how to deal with this issue, the dominant opinion was that sooner or later the threshold would have to be increased. The ruling of the Constitutional Tribunal may be seen as a conclusion of the discussion. It states that the regulation establishing the threshold at 3089 PLN are unconstitutional. The Tribunal also emphasized that the threshold has to at least have a value equivalent to the living wage.
Increasing this sum may be beneficial both for taxpayers and for the economy, as a reasonable amendment of the tax law could dynamize Polish entrepreneurship. More money in household budgets means a bigger consumption which, in turn, should provide an impulse for growth. However, one should not have any illusions as to the impact of a higher income tax threshold on the state budget. A serious reform of the entire tax system will be needed in order to a.o. make it less leaky. Although a change in regulations is unavoidable, the issue of the threshold should be an element of a wider discussion on the functioning of the tax system and the amendments it requires. These amendments should be a result of dialog involving the largest possible range of social partners – this is the only way to elaborating efficient, long-term solutions.
The Tax Committee of Employers of Poland