The Sejm, the lower house of Poland’s parliament, has passed a bill that raises the personal income tax (PIT) threshold to PLN 130,000 and introduces a new 24% rate. Lawmakers also adopted two amendments that the government opposed. The Senate will now decide on the bill.
On Thursday, October 22, 240 lawmakers voted for the bill, 58 voted against and 135 abstained. The changes are set to take effect on January 1, 2027.
Under the bill, income up to PLN 130,000 will be taxed at 12% (the threshold is currently PLN 120,000). Income between PLN 130,000 and PLN 150,000 will be taxed at 24%, and income above PLN 150,000 at 32%. The solidarity levy on income above PLN 1 million will rise from 4% to 5%. The bill also lowers the revenue limit for taxpayers who can use the flat-rate (ryczałt) system, from 2 million euros to 250,000 euros. In August, Prime Minister Donald Tusk said that about 3.5 million taxpayers would benefit from the PIT changes.
However, the Sejm adopted amendments from lawmakers Ryszard Petru (Centrum) and Janusz Kowalski (unaffiliated). The first introduces annual indexation of tax thresholds starting in 2028. The second strikes down an increase in the corporate income tax (CIT) rate from 19% to 22% for the largest companies, those with revenue above 50 million euros.
The government is unhappy with the outcome. Deputy Finance Minister Jarosław Neneman calculated that indexing the thresholds would reduce budget revenue by PLN 3.8 billion in 2028, and dropping the higher CIT would cost PLN 6.2 billion in 2027. Finance Minister Andrzej Domański argues that a 22% rate is roughly the European Union average. According to unofficial information from the daily Rzeczpospolita, the government will seek to remove both amendments in the Senate.
Source: PAP / Bankier.pl, Money.pl
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