For the first time since 2015, Poland’s central budget saw a nominal revenue decrease of nearly 5% in 2025, while VAT increased 12%.
Budget Revenue Decline
The Ministry of Finance has summarized the results of the central budget for 2025. For the first time since 2015, there was a nominal decrease in budget revenues, amounting to almost 5%.
Impact of Local Government Financing Changes
This decline is the result of changes in local government financing, where part of subsidies was replaced by a larger share of local government units in income tax revenues.
PIT Revenue Drop
Income tax revenues from individuals recorded in the budget decreased by 70% compared to 2024. These revenues were nominally even smaller than they were 15 years earlier.
VAT Performance
The most important component for the budget is VAT, which saw a 12% increase in 2025. While higher than in 2022-2023, this is lower than the 18% increase in 2024, which was due to the expiration of the zero VAT rate on food products.
