Polish government proposes middle-class tax cuts funded by increased rates for wealthiest
The changes would lower taxes for an estimated 3.5 million people with around or slightly above average earnings.
Poland's ruling government has proposed tax cuts for its middle class, with the costs to be covered by increased rates for the wealthiest. The changes, aimed at providing relief to the growing middle class, would take effect next year when the government faces re-election. The proposed tax cuts would raise the threshold for the lowest income tax bracket from 120,000 zloty to 130,000 zloty, while introducing a new 24% tax rate for earnings between 130,000 and 150,000 zloty, and a 32% rate for earnings above 150,000 zloty.
Currently, Poland has only two tax brackets: 12% for earnings up to 120,000 zloty and 32% for earnings above that level. The proposal also includes a plan to raise the corporate income tax from 19% to 22% for firms with annual revenues above €50 million, as well as increasing the solidarity levy for individuals earning over 1 million zloty by one percentage point to 5%.
The government's plans will require approval from parliament and President Karol Nawrocki, who is aligned with the opposition and has a history of vetoes.
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