The proposed amendments provide for a reducing in the PIT rate from 18 to 17 percent and raising the tax deductible expenses. This will translate into lower labour costs, hence lower tax wedge, i.e. the difference between the net money an employee receives and the amount which the company spends on their employment. Lower PIT rate will cover income earned from the employment relationship, from personally conducted activity, including contracts of mandate and contracts of specific work, or from economic activity of natural persons among others.
Mateusz Morawiecki explained that due to government actions, there will be
a reduction of approximately 6 percent, from 18 to 17, i.e. by 1 percentage point, in PIT for all citizens, including all pensioners.
The Prime Minister stressed that the proposed actions are to serve economic, development and social objectives. They will allow the government to decrease the number of the so-called
junk contracts and increase the access to legal labour market.
We have shown that it is possible to lower taxes and simultaneously experience economic growth as well as have a worthy social policy summed up the Head of Government.