Tax Threshold Hike to 140,000 PLN: Pełczyńska-Nałęcz Sets Talks with Domański
Minister Katarzyna Pełczyńska-Nałęcz has announced a meeting with Finance Minister Andrzej Domański for next week to discuss a proposed increase of the second personal income tax threshold to 140,000...
Minister Katarzyna Pełczyńska-Nałęcz has announced a meeting with Finance Minister Andrzej Domański for next week to discuss a proposed increase of the second personal income tax threshold to 140,000 PLN.
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Meeting on Income Tax Reform
Katarzyna Pełczyńska-Nałęcz, Minister of Funds and Regional Policy and leader of Poland 2050, confirmed that she will meet with Finance Minister Andrzej Domański next week. The discussion will center on a legislative proposal to raise the second tax threshold from the current 120,000 PLN to 140,000 PLN.
Pełczyńska-Nałęcz stated that she is scheduled to present the comprehensive proposal to Minister Domański during their upcoming meeting in the Sejm.
Legislative Details and Tax Rates
The proposal involves an amendment to the Personal Income Tax (PIT) Act, submitted by Poland 2050 deputies in mid-April. Under the current system, income up to 120,000 PLN is taxed at 12 percent, while income above that limit is taxed at 32 percent.
The new project suggests that income up to 140,000 PLN would be taxed at 12 percent (minus a 3,600 PLN reduction amount), with the 32 percent rate applying only to income exceeding the higher 140,000 PLN threshold.
Objective of the Tax Adjustment
According to the authors, the project aims to provide relief to the middle class and prevent individuals with average incomes from being pushed into the higher tax bracket, a situation that often occurs toward the end of the year as earnings accumulate.
The justification for the bill indicates that raising the threshold would result in a tangible financial benefit for middle-income earners, amounting to an average tax savings of approximately 2,600 PLN per year.
Endorsement from Karol Nawrocki
In April, the Poland 2050 initiative received support from President Karol Nawrocki, who introduced a similar proposal in August of last year. His suggested changes include raising the second tax threshold to 140,000 PLN and implementing a zero-percent PIT rate for families with two or more children.