DevelopMin: Poland could hike standardized deduction gradually

Poland could opt for a gradual increase of standardized deduction to reach PLN 8k and making it more progressive to support those earning the least, Development Minister Mateusz Morawiecki told Rzeczpospolita daily in an interview.

“Standardized deduction should be increased but whether it should be a one-off [increase] to PLN 8k or whether [it should be] some sequence, it is a matter for discussion,” Morawiecki said. “I will rather opt for phasing this move.”

“I am also in favor of making it more progressive . . . as the point of increasing standardized deduction is mainly to help people who earn the least or little,” he said, adding he supports the British model of such deduction.

Increasing standardized deduction to PLN 8,000 was among chief campaign pledges of the election winner PiS that was reiterated by PM Beata Szydlo in her inaugural speech last Wednesday.

Most recently minister Henryk Kowalczyk, the head of cabinet’s standing committee, told reporters standardized deduction hike will be implemented as of 2017.

In October Poland’s Constitutional Tribunal ruled that standardized tax deduction at the level of PLN 3089 is unconstitutional due to the lack of indexation mechanism, and will expire on November 30, 2016.

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