Poland is hoping to boost investment with its “Polish Deal” economic programme, the finance minister said, as it banks on a raft of measures worth an estimated 1.5% of gross domestic product to help the country rebound from COVID-19.
The government says the “Polish New Deal” will cut taxes for the vast majority of Poles, while boosting spending on health and encouraging companies to invest. But business leaders and a junior partner in the ruling coalition have opposed changes to income tax that will mean higher earners pay more.
“Solutions such as a higher tax-free amount and a lower effective tax rate as a result of raising the second threshold themselves constitute a demand impulse needed to revive the economy,” Finance Minister Tadeusz Koscinski wrote in response to questions sent by Reuters.
Koscinski said initial estimates put the cost of the programme at 1.5% of GDP in 2022.