Jarosław Neneman: We are preparing sensible changes that will not make taxpayers’ lives harder

Poland’s Finance Ministry says a new 24% personal income tax rate will not make the tax system unreasonably complicated, despite criticism that adding another bracket contradicts the push for deregulation.

Jarosław Neneman, a deputy finance minister, argues that accountants already calculate tax advances automatically through payroll and accounting software. The new bracket would sit between the existing 12% and 32% rates, which he describes as too abrupt a jump. The gap between the new thresholds would amount to 20,000 złoty.

Neneman says progressive taxation remains socially acceptable, whether the system has two, three or five brackets. He acknowledges that the government could index the tax-free allowance and the 32% threshold, for example in line with inflation. But he says such a mechanism would make it harder to balance lost public-sector revenue, particularly while the president vetoes reforms aimed at increasing income.

The government also plans to remove the internet tax relief, introduced when internet access was spreading and after the abolition of a VAT exemption for internet services. Neneman says the relief no longer needs to support internet use, while the government is extending the robotization relief and increasing deductions for honorary blood donors.

Changes to personal income tax could reduce the amount available to charities through the 1.5% allocation system. An impact assessment estimates that these organizations could receive up to 89 million złoty less, although Neneman notes that their receipts had previously grown while tax parameters remained frozen. The proposal also includes a 22% corporate income tax rate for taxpayers exceeding €50 million.

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We are introducing a 24% rate because we decided that the jump from 12% to 32% is too drastic.