WARSAW: Poland’s tax system is not favourable to people entering the job market, contributing to pushing youth into working abroad, A PWC consultancy report stated. The Poland’s income tax rates of 18 and 32% are higher than many other new EU countries in Central and Eastern Europe, though significantly below Western European levels which can reach up to 50 percent.
Poland is just 20th in the EU in terms of income tax rate according to report. However Joanna Narkiewicz-Tarłowska from PWC explained “although Poland was ranked 20th in the 28-country bloc, we should also take into account aspects such as the tax-free allowance, the level of tax thresholds, the possibility of tax breaks and social contributions.” The tax-free allowance in Poland, equivalent to EUR 750 a year, is relatively small compared to the rest of the EU. The UK for example does not apply income tax to the first EUR 13,500 of income per year, while also exempting low incomes from social contributions. In addition the Polish tax-free allowance has not been increased for several years. According to Narkiewicz-Tarłowska this low allowance is responsible for driving young people and the unemployed to look for work abroad as they would have to pay tax on low incomes if working in Poland.
