WARSAW: Following Law and Justice’s (PiS) plans outlined last weekend to introduce child benefits, to lower the retirement age from 67 to 63 and to raise the income tax threshold to PLN 8,000, the ruling Civic Platform is striking back and preparing its proposals.
According to a source quoted by Gazeta Wyborcza, the government plans to introduce a zero percent PIT for young Poles under 30, which will supposedly help them enter the labor market. The daily’s estimates show that such a move will result in shrinking the state’s budget by PLN 3 billion.
The ruling party also wants to decrease the VAT tax rate from 23 percent to 22 percent, a level that was effective before the European Commission imposed the Excessive Deficit Procedure on Poland. To fight against the so-called “junk contracts,” the government is mulling lowering the CIT tax rate from 19 percent to 15 percent under the condition that a company hires on full-time contracts.
Finally, the Civic Platform also wants to raise the income tax threshold to a modest PLN 3,575 from PLN 3,091.
