On 27 October 2026, the Law and Justice (PiS) party unveiled a draft bill to partially reverse the 2022 Polish Deal tax changes introduced under then-PM Mateusz Morawiecki. The PiS proposal would restore the pre-2022 PIT structure: a 17% flat rate up to PLN 85,528 and 32% thereafter, while eliminating the current 12%/32% progressive scale and the PLN 30,000 tax-free allowance. Former PM Morawiecki, now in opposition, dismissed the move as “populist fiscal vandalism” that would cost PLN 40 billion annually. The government coalition has pledged to block the bill in committee.
Key Takeaways
- Fiscal Cliff Risk: Independent analysts estimate the PiS bill would increase the structural deficit to 4.8% of GDP, breaching EU fiscal rules.
- Retroactivity Concerns: The draft lacks transitional provisions, creating legal uncertainty for 2026 tax settlements already in progress.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement