The Polish People’s Party (PSL) plans to submit a bill to parliament increasing the tax-free income threshold to 60,000 złoty over three years.
PSL’s Proposed Tax Changes
The Polish People’s Party (PSL) intends to present a draft amendment to the Personal Income Tax Act (PIT) to the Sejm, gradually raising the tax-free allowance.
According to PSL MP Marek Sawicki, the proposed increase would reach 60,000 złoty after three years of implementation. The plan involves a phased approach: 35,000 złoty in the first year, 45,000 złoty in the second, and 60,000 złoty in the third.
Alignment with Coalition Promises
The PSL states this initiative fulfills a pledge made by the Civic Coalition and Prime Minister Donald Tusk to increase the tax-free income threshold.
Additional Provisions in the Bill
The draft legislation also includes provisions for tax-free pensions and linking the 800+ program to the tax-free allowance. The PSL also intends to propose legislation to prevent the liquidation of housing cooperatives.
Tusk’s Previous Commitment
Increasing the tax-free allowance from 30,000 złoty to 60,000 złoty was a key promise made by the Civic Coalition during the 2023 election campaign.
Prime Minister Donald Tusk stated in May of last year that the increase would occur before the end of his term, contingent on budgetary constraints. He emphasized his determination to implement the change, despite potential limitations due to the budget deficit and European funds.
Financial Concerns Raised
In late July of last year, Finance Minister Andrzej Domański indicated that a 60,000 złoty tax-free allowance would not fit within the 2026 budget. However, the Ministry of Finance continued to explore ways to make it feasible.
