Poland Seeks To Shift Tax Burden To The Rich

by Ulrika Lomas, Tax-News.com, Brussels

25 April 2002

Polish Finance Minister, Marek Belka announced recently that there are plans to shift a greater proportion of the country's tax burden onto the shoulders of wealthy taxpayers and savers.

The proposals are intended to mollify the growing numbers of unemployed in Poland in the run-up to a referendum on EU accession in 2004. The country's lower income taxpayers are more sceptical about the possibility of EU entry than other income groups, and the government is concerned that, if something is not done to improve their situation, the membership referendum may be seen by many as an opportunity to lodge a protest vote.

'In a situation where there is a danger of social unrest, we have to respond (by) shifting the tax burden to the better off,' Mr Belka explained last week.

The Finance Minister revealed that details of the planned personal tax changes for lower income taxpayers have not yet been finalised, but said that one proposed draft would expand a 0% tax bracket for low income earners and reduce the thresholds for the current three-tier rates of 19%, 30%, and 40%.

According to reports in the local media, the Cabinet has also approved a package of tax simplification measures for SMEs in order to stimulate the country's ailing economy.

Recommended