Increasing the tax-free amount to PLN 60,000 postponed. “For sure, before the end of the term, the free allowance will be a fact, not my dream,” said Prime Minister Donald Tusk.
Will there be a tax-free amount of PLN 60,000? zloty?
Prime Minister Donald Tusk recalled the promise related to increasing the tax-free amount, which appeared on the program list of the Civic Coalition under the slogan “100 specifics for 100 days”.
Point 4 of the program includes the following entry: “We will increase the tax-free amount – from PLN 30,000 to PLN 60,000, in the case of taxpayers settling according to the tax scale, including entrepreneurs and retirees.” As a result, people earning up to PLN 6,000 gross (also from business activity) and receiving a pension of up to PLN 5,000 gross would not pay income tax.
When will the tax-free amount be increased?
The head of government said following the last meeting of the Council of Ministers that “We are not giving up on the project of the free allowance of PLN 60,000. PLN, but this year we are unable to implement it due to budget reasons. The amount of money for broadly understood security – not only military purchases – makes us think extremely carefully regarding this change, because it has massive financial consequences.
Prime Minister Tusk also pointed out that “The Minister of Finance is obliged to ensure that the tax-free amount is the result of our work anyway – certainly not this year and certainly before the end of the term.” “We need to revise not the idea itself, but the process of achieving it. Next year we will return to the project and see to what extent it is possible. Certainly, before the end of the term, the tax-free allowance will be a fact, not my dream,” he assured.
Increasing the tax-free amount to PLN 60,000. PLN – what are the consequences?
It is estimated that increasing the tax-free amount from PLN 30,000 to PLN 60,000 might, in 2024, result in a reduction of the personal income tax burden by approximately PLN 48 billion – such data are provided in parliamentary question no. 16 regarding increasing the amount free from personal income tax (PIT).
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How did the tax-free amount increase in 2007-2015?
The tax-free amount, i.e. the annual amount of the tax base resulting from the tax-reducing amount specified in the tax scale, on which no income tax is levied, was:
- 2007 – PLN 3,013,
- 2008 – 2016 – PLN 3,089,
- 2017 – PLN 6,600, however, in relation to annual income exceeding PLN 6,600, the tax-free amount decreased, while in the income range from PLN 11,000 to PLN 85,528 it was constant and amounted to PLN 3,089, and for income above PLN 127,000 PLN it did not apply,
- 2018 – 2021 – PLN 8,000, however, in relation to annual income exceeding PLN 8,000, the tax-free amount decreased, in the income range from PLN 13,000 to PLN 85,528 it was constant and amounted to PLN 3,089, and for income over PLN 127,000
it did not apply, - 2022 – PLN 30,000.
