Poland plans to end internet tax relief, boost blood donor incentives

Poland's Ministry of Finance is proposing significant changes to tax reliefs, including the complete elimination of the tax deduction for internet expenses. The ministry argues that this relief, introduced in 2005 to combat digital exclusion, is no longer justified as 96.2% of households now have internet access.

The current internet relief allows individuals to deduct up to 760 Polish zloty annually, but it is limited to two consecutive years. The ministry contends that the relief has lost its original purpose and is now being used in ways not intended by lawmakers, while also reducing state revenue.

In contrast to the internet relief, the government plans to enhance incentives for blood donors. The proposal includes a 100% increase in the deductible amount for blood and blood component donations. Currently, the deduction is calculated based on the volume of blood donated multiplied by a compensation rate, capped at 6% of annual income. This measure aims to bolster motivation and participation in blood donation.

Additionally, the Ministry of Finance intends to abolish the "expansion relief" for businesses, which was implemented at the beginning of 2022 to encourage Polish entrepreneurs. The details of these proposed changes are currently undergoing public consultation.