Poles Prefer Higher Tax-Free Allowance Over Government's PIT Reform Plans

A recent poll reveals that Polish citizens overwhelmingly prefer an increase in the tax-free allowance to the government's proposed changes to income tax scales. The survey, conducted by CBOS for Dziennik Gazeta Prawna, found that 40.9% of respondents favored raising the tax-free amount, a key promise from the ruling Civic Coalition during the 2023 election campaign.

The government, led by Prime Minister Donald Tusk and Finance Minister Andrzej Domański, has outlined plans to implement a new 24% tax rate for annual incomes between 130,000 and 150,000 zloty. A 32% rate would apply to income exceeding 150,000 zloty, a threshold currently set at 120,000 zloty. These changes are slated to take effect in 2027. However, the proposal notably excludes an increase in the tax-free allowance from its current 30,000 zloty to 60,000 zloty.

Support for the government's specific proposals is considerably lower. Only 16% of those polled backed raising the threshold for the 32% tax bracket, while 10.7% supported introducing an additional rate for high earners. A further 10.2% favored introducing intermediate tax rates between the current 12% and 32% brackets. Notably, 11.1% of respondents wished to see the tax system remain unchanged.

Political leanings strongly correlate with these preferences. A significant 57.3% of opposition supporters desire a higher tax-free allowance, compared to 36.4% of ruling coalition voters. Conversely, 19.6% of government supporters favor raising the 32% bracket threshold, versus 12.5% of opposition voters. Sociologist Andrzej Rychard suggests the government made a communication error by not prioritizing the tax-free allowance increase, later explaining it was financially unfeasible. He cautions, however, that tax-cutting debates alone may not win new voters, as populist demands often resonate most with existing supporters.