Poland mulls various options of standardized deduction increase

Poland won’t raise the standardized deduction as of the beginning of 2016, and will yet consider its gradual implementation or a degressive scale, cabinet minister Henryk Kowalczyk told the daily Dziennik Gazeta Prawna.

“We have time to choose options,” Kowalczyk said. “And any option is possible: a gradual reaching of the target level or a degressive deduction – big for the poorest, and decreasing along with income growth.”

Those options will be considered with some knowledge of the first effects of VAT collection tightening, Kowalczyk noted.

A bill increasing the standardized tax break to a PLN 1440 from from PLN 556.02 currently as of January 1, 2016, translating into a standardized deduction on taxable income of PLN 8002, has recently been submitted by the Polish President. The cost of the solution has been estimated at PLN 16.16 bln.

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