'The Point Is': Cezary Szymanek: Government Gives What It Takes From Others

The Polish government's recent tax proposals are primarily driven by political calculations rather than genuine economic reform, according to Cezary Szymanek, deputy editor-in-chief of Rzeczpospolita. Szymanek suggests the changes are an attempt to appease voters by fulfilling some campaign promises, particularly after failing to raise the tax-free allowance, a key pledge of the ruling coalition.

While the package includes measures like raising the tax bracket and introducing a middle tax rate intended to benefit individuals earning around 14,800 PLN gross per month, Szymanek questions whether this will satisfy the middle class. He points out that the significant cost of raising the tax-free allowance, estimated in the tens of billions of zlotys, is prohibitive for the current budget, especially given high defense spending and a substantial deficit. "The government gives as much as it takes from others," he summarizes, indicating that any benefits are likely offset by other measures.

Businesses, particularly entrepreneurs, are bracing for potential negative impacts. Proposed changes to corporate income tax (CIT) include increasing the rate for high-revenue firms and drastically lowering the threshold for the lump-sum tax. This has drawn criticism from the business community regarding the pace of implementation and the lack of consultation. Szymanek notes that such changes should have been introduced much earlier if they were part of a long-term plan.

The adjustments to the lump-sum tax are particularly concerning for businesses that may not be wealthy but have high revenues with low margins. Szymanek cites the example of a salesperson with 1.5 million PLN in revenue and a 10% margin, who earns about 150,000 PLN annually but could be significantly affected. This situation prompts calls from the business sector for a more progressive tax system rather than abrupt changes that increase operational costs and may lead businesses to invest more in tax optimization strategies.