Gov't to freeze income taxes to drive consumption - Finance Minister
Poland’s finance minister said he wants as much money to stay in people’s pockets so that it spurs consumption and helps the country out of the coronavirus-induced recession.
Tadeusz Kościński said the government wanted the public to spend, "because that drives consumption and will help pull Poland out of the recession that our economy has found itself in, as a result of the pandemic. And for that reason we are not raising taxes."
He went on to say that the government reduced personal income tax a year ago from 18 to 17 percent, and to zero for people under the age of 26.
"So it is difficult for us to reduce it further," he said. "We also doubled tax-deductible costs. I think a lot was done before the pandemic."
He added this had reduced the amount of money flowing into the state budget.
"And from the budget we are financing aid for enterprises, saving jobs, strengthening the economy," Kościński said. "As I've already mentioned, the economy is driven among other things, by consumption, and that is why we are maintaining social programmes like 500+ (child benefit - PAP) or the thirteenth monthly pension payment and, next year, also a fourteenth pension payment."
Kościński said it was not up to his ministry to decide whether the fourteenth pension would be annual or a one-off payment.