The presidential draft of the bill increasing the income tax threshold has been sent to Sejm. If it is passed, on January 1st 2016 the threshold will go up from 3091 to 8 000 PLN.
President Andrzej Duda wastes no time in carrying out his election promises. On November 30th, the draft of the bill on personal income tax was sent to Sejm and on December 1st the first reading was held. The description of the draft states that the main objective of the drafted amendment is to improve the economic condition of households and entrepreneurs by decreasing the direct taxation of their income subject to the personal income tax based on the relevant act. This aim will be met by increasing the tax decrease sum from 556.02 PLN to 1 440 PLN, thus indirectly increasing the income tax threshold from 3 091 PLN to 8 000 PLN and increasing the income tax deduction advance from 46.33 PLN to 120 PLN.
Maintaining the threshold on the same level for many years has led to a situation where it does not fulfil its basic functions – it no longer reflects the existential minimum. Therefore, increasing it can be expected to improve taxpayers’ economic standing. Moreover, it should contribute to higher consumption which should have a positive impact on the economy.
The Tax Committee of Employers of Poland