The cabinet, meeting on Tuesday, will discuss raising the income tax threshold from PLN 120,000 to PLN 130,000, below which a 12 percent rate applies.
It will also consider introducing a new, intermediate 24 percent rate for income between PLN 130,000 and PLN 150,000, meaning the top rate of 32 percent would only apply above that level.
The proposed PLN 130,000 threshold is equivalent to roughly USD 33,820 or EUR 29,750.
Prime Minister Donald Tusk and Finance Minister Andrzej Domański first announced the proposals in mid-August.
The changes are expected to cost billions of zlotys, which the government plans to offset by raising other taxes.
These include increasing a solidarity levy on people earning more than PLN 1 million (EUR 230,000) a year to 5 percent, and raising corporate tax from 19 percent to 22 percent for companies with annual revenues above EUR 50 million.
Ministers will also discuss a bill aimed at tightening the rules governing family foundations.
The cabinet is separately due to approve next year's draft budget, which under Polish law must be submitted to parliament by the end of September.
The budget envisages spending of more than PLN 970 billion (EUR 222 billion) and revenue of PLN 695 billion (EUR 159 billion).
Defence spending is set to rise to nearly PLN 200 billion (EUR 46 billion), or 4.51 percent of GDP, while healthcare spending would increase to more than PLN 270 billion (EUR 62 billion), up over PLN 26 billion on 2026.
(ał)
Source: IAR