Ruling party seeks tax system overhaul, dropping social security premiums

Poland’s ruling party Civic Platform (PO) wants to overhaul its personal income tax and social security system, dropping social security and health insurance premiums altogether and altering the PIT rate, with the lowest rate at 10% and the highest at 39.5%, and with the cost of changes seen at PLN 10.2 bln annually, PO said in its platform on economic issues. According to the proposal, PIT would be calculated based on income per person in a household.

“The changes to the tax system would be implemented in 2017 or 2018”, Finance Minister Mateusz Szczurek said.

After dropping the social security and health insurance premiums, money to the social security board ZUS and the national health fund NFZ would be provided from the budget.

Additionally, PO will seek to introduce a minimal hourly wage of PLN 12, beyond year 2016.

PO will also seek to introduce a uniform labor contract, whenever a link between an employer and employee is a lasting one.

Despite those moves, PO expects to reach a 1% structural deficit figure in 2019 and to reduce public debt to 50% of GDP in 2018.

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