Report on the implementation of the expose programme

This document is a report on the performance of the programme presented in the expose of Prime Minister Donald Tusk, which was delivered at the Sejm on 18 November 2011.



PUBLIC FINANCE
  • Bill amending the Public Finance Act and other acts (to be adopted by the government in the first quarter of 2012, interministerial consultations are pending). The proposed solutions enable, among others, reducing increases in debt and deficit in local government units, and will create appropriate conditions for introducing fiscal regulations applicable to the entire public finance sector.

PENSION SCHEME
  • Bill amending the act on pensions and disability pensions paid from the Social Insurance Fund and certain other acts (to be adopted by the government in the first quarter of 2012, the bill is being prepared). The regulation concerns the pension scheme reform and contains solutions ensuring the safety and security of both the pension scheme (demographic changes) and public finance (reducing increases in public debt). It is planned to gradually balance and raise retirement age for men and women from 2013. The target retirement age is 67 years. Bill amending the act on pensions and disability pensions paid from the Social Insurance Fund and certain other acts (to be adopted by the Sejm on 13 January 2012). Introducing new pension indexation in order to eliminate differences between benefit amounts. This is connected with indexing pensions by a fixed amount. This type of indexation will be more beneficial for less wealthy pensioners.
  • Bill amending the Uniform Services Pensions Act (to be adopted by the government in the first quarter of 2012, interministerial consultations are pending). In accordance with the government’s intentions, the new uniform services pensions scheme involves extending the working period necessary for obtaining retirement right, as well as specifying the age at which officers will be entitled to retirement benefits.

TAX SYSTEM
  • Act on amending certain acts connected with the performance of the Budget Act (solutions enabling more effective collection of the capital-gains tax on investment profits, popularly referred to as “Belka’s tax” will enter into force in April 2012). The Supplementary Budget Law contains solutions inhibiting capital-gains tax evasion. This refers to the so-called “daily deposits” and “Belka’s tax”.
  • Bill amending the Personal Income Tax Act (to be adopted by the government in the first quarter of 2012, bill is being prepared). The following has been foreseen: - eliminating the Internet tax rebate – amendments regarding the 50% deductible rebate (such a deduction will be possible for income amounting to PLN 85,000 annually); - amendments in children tax credits aimed at supporting families with lowest income, as well as families with at least three children: a) in the case of families raising one child whose annual income does not exceed PLN 85,000, children tax credit remains unchanged; b) in the case of families raising one child whose annual income exceeds PLN 85,000, the tax credit shall not apply; c) in the case of families raising two children – irrespective of annual income – the tax credit shall remain unchanged; d) in the case of families with three or more children – irrespective of annual income – the tax credit shall apply for all children, but the credit for the third child and successive children will be increased by 50%.
  • Bill amending the Family Benefits Act (to be adopted by the government in the first quarter of 2012, interministerial consultations are being held). The proposed amendments serve the purpose of implementing the principles of justice and social solidarity. The number of persons entitled to the one-off new-born allowance will be reduced. The so-called “new-born allowance” will be paid out to families with annual income below PLN 85,000.
  • Assumptions for the bill amending the Personal Income Tax Act, the Corporate Income Tax Act, the Act on lump-sum income tax on certain revenues obtained by natural persons, the Agricultural Income Tax Act (to be adopted by the government in the first quarter of 2012, bill is being prepared). The government intends to impose income tax on income from agricultural activity. The suggested solutions are, among others, as follows: introducing modifications to the agricultural tax resulting from the implementation of income tax, abolishing the price of rye as the basis for calculating the agricultural tax rate and introducing a fixed-amount tax rate indexed annually by the inflation rate; reducing the number of reliefs and exemptions in connection with imposing income tax on agricultural activity.

INSURANCE PREMIUMS
  • Act on amending the Social Insurance System Act (enters into force on 2 February 2012). The pension premium covered by the employer will be increased by 2 percentage points. This solution will enhance the situation of the public finance sector, as it will reduce the increase in public debt.
  • Bill on 2012 health insurance premiums of farmers not pursuing activity in special agricultural production areas and other residents of their households and bill amending the act on health services financed from public funds (adopted by the Sejm on 13 January 2012). In accordance with the decision of the Constitutional Tribunal, a health premium for farmers will be introduced in February 2012. The payment of this premium will adhere to the following principles: - in the case of farmers holding less that 6 ha - the premium will be covered by the state budget; - farmers with farms between 6 and 15 ha - will pay a premium amounting to PLN 18, - farmers with farms above 15 ha - will pay a premium amounting to PLN 36.

NATURAL RESOURCES
  • Bill concerning the tax on extracting certain fossils (the government adopted the bill on 17 January 2012). In accordance with the Prime Minister's announcement, the new provisions are to ensure that the state has a share in the profits from the exploitation of certain natural resources belonging to the state (tax on copper and silver).
  • Assumptions for the bill concerning the tax on hydrocarbons extraction (to be adopted by the government in the first quarter of 2012, bill is being prepared). The new provisions are to ensure that the state has an appropriate share in the resource profit tax. This refers to the benefits resulting from exploitation of shale gas.

ENTERPRENEURSHIP
  • Assumptions for the bill on reducing certain administrative burdens in the economy (to be adopted by the government in the second quarter of 2012, bill is being prepared). The proposed solutions are a continuation of the activities aimed at reducing administrative burdens and informative duties regarding pursuing business activity, as well as reducing the costs incurred by entrepreneurs while performing such activity.
  • Assumptions for the new bill amending the Building Law (to be submitted for inter-ministerial consultations in the first quarter of 2012). Solutions which will facilitate the building process will be included in the document. New regulations will specify, among others, general principles for constructing facilities, introduce investor-friendly procedures of locating facilities, and simplify administrative procedures preceding the commencement of construction works.

JUDICIARY
  • Assumptions for the bill amending the Code of Criminal Procedure, the Petty Offences Procedure Code and the Penal and Fiscal Code (to be adopted by the government in the second quarter of 2012, bill is being prepared). The prepared amendments are connected with the acceleration of court proceedings by one third announced by the Prime Minister. Allowing court referendaries to perform procedural activities (in penal, penal and fiscal and petty offence cases) should reduce the time necessary for completing the proceedings.
  • Assumptions for the bill amending the Act – Code of Criminal Procedure and certain other acts (to be adopted by the government in the first quarter of 2012, bill is being prepared). The amendments are aimed at reducing court procedure time by one third. This concerns, among others: the right of the accused to participate in the case (until now it was an obligation of the accused); admitting court referendaries to performing activities connected with criminal procedures limiting the possibilities of returning cases to the public prosecutor’s office, introducing a new type of security against property (securing financial assets on debit cards).
  • Assumptions for the bill amending the Act – Law on the System of Common Courts and the Act on Public Prosecution (to be adopted by the government in the first quarter of 2012, bill is being prepared). The document is connected with the revision of powers resulting from the retirement of public prosecutors and judges which was announced by the Prime Minister. Amendments will concern, among others, retirement age and seniority giving the right to retirement.

OTHER
  • Assumptions for the bill reversing or amending acts regulating the performance of certain professions (to be adopted by the government in the second quarter of 2012, bill is being prepared). It has also been proposed to expand access to the so-called “regulated professions” (professions requiring particular qualifications stipulated in provisions of law).
  • Bill amending the Act on the Bank Guarantee Fund and certain other acts (to be adopted by the government in the first quarter of 2012, interministerial consultations are being held). It will also be proposed to introduce the so-called “caution fee” to Polish institutional law. The caution fee would allow for obtaining additional non-budgetary funds for financing activities aimed at maintaining the stability of the banking sector. This means that some financial institutions will be obliged to pay the caution fee to the Bank Guarantee Fund (BFG). These funds will be recorded by a special fund – the Stabilisation Fund. Payments would be made twice a year. The payment amount will be established annually by the BFG Council.
  • Package of bills on e-administration: assumptions for the bill amending the act on activity informatisation of entities performing public tasks, assumptions for the bill on opening public resources, assumptions for the bill amending certain acts in connection with changes in the organisation of local government administration (to be adopted by the government in the first quarter of 2012, bill is being prepared). The bills prepared in the Ministry of Administration and Digitalisation will implement the concept announced by Prime Minister Donald Tusk regarding the facilitation of administrative works by using cutting-edge IT techniques and contributing to the increasingly wide-spread usage of various types of resources, including educational, cultural and scientific resources, by citizens.
  • Assumptions for the bill amending the National Court Register Act and certain other acts (to be adopted by the government in the first quarter of 2012, bill is being prepared). The amendments are aimed at facilitating the procedure of registering entrepreneurs in the National Court Register. It is intended to reduce formal requirements connected with commencing business activity and lifting the requirement to submit numerous forms and certificates, including, among others, automatic assignment of the Tax Identification Number (NIP) and REGON after entering an entrepreneur into the register.
  • Assumptions for the bill amending the Act – Petty Offences Procedure Code (to be adopted by the government in the second quarter of 2012, bill is being prepared). Introducing e-protocols to petty offences procedures (in the form of electronic sound recordings).
  • Assumptions for the new bill amending the Act - Law on Bankruptcy and Rehabilitation (preliminary works on amendments are pending). The main objective is to ensure that more consumers are entitled to benefit from consumer bankruptcy. The valid legal provisions were too strict. The conditions for announcing consumer bankruptcy will be expanded.
  • Assumptions for the bill amending the act on land and mortgage registers and register of mortgages (it is expected that the bill will be presented to the standing Committee of the Council of Ministers for consideration in the first quarter of 2012). Facilitations for citizens have been foreseen, among others, statutory guarantee of free-of-charge general access to land and mortgage registers via Internet and obtaining electronic excerpts from land and mortgage registers.
  • Proposal of reforming principles for obtaining retirement rights (bill is currently being prepared). This concerns changes in the miners’ pension scheme. Privileges will be granted only to miners working directly at extraction sites.
  • Issuing regulations increasing the pensions of soldiers and police officers by PLN 300 from 1 July 2012 (to be presented to the Council of Ministers in the first quarter of 2012, bill is being prepared).

See also