Poland to cut taxes for added growth

16 Apr 2019

taxesIn an effort to enhance growth, Poland is planning to reduce taxes by 10.4 billion zlotys ($2.75 billion) in 2020.

The finance ministry announced these cuts following promises made by the government, surrounding tax and social spending.

When speaking to reporters, Finance Minister Teresa Czerwinska said: “We raised our estimate for GDP growth (for 2019) from 3.8 percent to 4 percent, so we expect that this … will stimulate growth.”

Some of the plans announced in February include increasing income tax for people below the age of 26, dropping the lowest rate of income tax from 18% to 17% and hiking tax deductible costs.

Czerwinska first told reporters that lowering the income tax base rate would cost “about five and a half billion zlotys” in 2020.

The ministry’s press office then tweeted that the cost would amount to 5.3 billion zloty in 2020. The cost of removing income tax for people below the age of 26 will cost 1.7 billion zloty and changes to tax deductible costs will amount to 3.4 billion zloty.

According to Czerwinska, the deficit of public finances is estimated at 1.7% in 2019. – Reuters reports.