In brief

• Prof. Witold Modzelewski criticizes the government's fiscal policy and warns of a growing deficit.
• A draft amendment to the PIT has been sent to the Sejm, and the rules are to apply from 2027.
• The first threshold will rise from 120 thousand to 130 thousand zloty, and between 130 and 150 thousand zloty a 24 percent rate will apply.
• According to the Ministry of Finance, about 3.5 million taxpayers will gain, by at most 3,600 zloty a year.

Criticism of the government's fiscal policy

Prof. Witold Modzelewski, an economist and lawyer, former deputy minister of finance and president of the Institute of Tax Studies, assessed in the Newsmax Polska programme that the government of Donald Tusk is dealing with changes that will not solve the main problem of public finances (Prof. Modzelewski miażdży politykę podatkową rządu. "To jest odklejenie" – dorzeczy.pl) (Prof. Modzelewski dla Newsmax Polska o polityce fiskalnej rządu: "To odklejenie" – newsmaxpolska.pl). In his view, the fiscal efficiency of the tax system is declining. The economist speaks of a deepening crisis and warns against a growing deficit.

What the PIT reform project changes

The government adopted a draft amendment to the personal income tax (PIT) and sent it to the Sejm. The changes are to apply from 2027. The Ministry of Finance estimates that about 3.5 million taxpayers will gain under the new rules, and the largest annual saving will reach 3,600 zloty.

Thresholds and rates in numbers

• First tax threshold: 120 thousand zloty currently, 130 thousand zloty from 2027
• 24 percent rate: income from 130 thousand to 150 thousand zloty
• 32 percent rate: the part of income above 150 thousand zloty

Prof. Modzelewski criticizes both the logic of these changes and their size. In the economist's view, the tax system requires measures that increase its effectiveness in collecting revenue, and the project does not do this.