Domański: Left’s Health Tax Proposal Not a Government Project

Finance Minister clarifies the Left’s 12% health tax plan is not an official government initiative.

Health Tax Discussion

Finance Minister Domański informed that on Tuesday, a meeting was held with the Left party club and Health Minister Jolanta Sobierańska-Grenda to discuss the healthcare system and proposed changes. The Left’s proposal suggests introducing a 12% health tax instead of health contributions, with a 30,000 zł tax-free threshold. Funds would also come from a “fat tax” and alcohol excise duties.

EU Debt Warning

Domański responded to a European Commission report warning that without limiting debt and deficit, Poland could face a “Greek scenario.” The Minister called this scenario “highly unrealistic,” noting the document describes specific conditions that would need to materialize for it to occur.

Budget and Economic Growth

The Minister emphasized that last year’s budget deficit was lower than the maximum allowed in the budget law, thanks to favorable labor market conditions and higher contribution and tax revenues. “Economic growth is accelerating, and rising VAT revenues are gradually stabilizing public finances,” he stated.

Defense Spending Priorities

Minister Domański acknowledged that the pace of indebtedness relates to high defense expenditures reaching nearly 5% of GDP. Approximately 200 billion zł is allocated annually for army modernization, with security remaining a government priority.

EU Recommendations Rejected

Regarding the EC’s recommendations, including introducing income criteria for the 500 plus program, limiting family benefits, or raising the retirement age to 67, Domański assured that none of these measures are planned by the government.

NBP Tribunal Case

The Finance Minister also addressed his meeting with NBP President Adam Glapiński, discussing the economy, inflation, and financial stability. Domański confirmed that the Civic Coalition has not abandoned plans to put the NBP president before the State Tribunal. The NBP considers the tribunal allegations completely unfounded, warning the proceedings could paralyze the central bank’s work.

MF Personnel Change

Domański denied media reports that the departure of MF Director General Marta Niżałowska-Pactwa was related to the National e-Invoice System implementation, stating her departure resulted from professional plans.

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