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Poland to cut taxes to lessen Ukraine war impact: PM

24.03.2022 12:30
Poland will slash taxes to protect people's incomes from the impact of Russia’s invasion of Ukraine, Prime Minister Mateusz Morawiecki has said.
Polands Prime Minister Mateusz Morawiecki announces proposed new tax cuts at a news conference in Warsaw on Thursday, March 24, 2022.
Poland's Prime Minister Mateusz Morawiecki announces proposed new tax cuts at a news conference in Warsaw on Thursday, March 24, 2022. PAP/Paweł Supernak

Under the government’s plan, the personal income tax rate will be reduced from 17 percent to 12 percent, Morawiecki announced on Thursday.

The cut would apply to 25 million taxpayers, according to officials.

In addition, health insurance premiums would be made tax-deductible for entrepreneurs, Morawiecki said.

He announced the scrapping of a "complex measure” known as “the middle-class tax credit,” public broadcaster Polish Radio’s IAR news agency reported.

The planned changes also include more favourable tax treatment of families with children and single parents, the state PAP news agency reported. 

Morawiecki said that more proposals would follow over the coming weeks as the government extends its “anti-Putin shield” to counteract price pressures caused by Russia’s war on Ukraine.

The aim is to “give Polish taxpayers breathing space in these difficult times that lie ahead of us,” he told reporters.

Last week, Morawiecki announced a set of new policies to mitigate the economic effects of the war in Ukraine. These include help for farmers with the costs of buying fertilisers, whose prices drive food prices, news outlets reported.

Thursday is day 29 of Russia’s invasion of Ukraine.

(pm/gs)

Source: IAR, PAP, TVP Info