About three months before the Polish parliamentary election, the government in Warsaw abolished the income tax for young workers. Anyone under the age of 26 will be exempt from tax from August – that’s the new regulation.
According to the government, Poland’s national conservative governing party Law and Justice (PiS) wants to increase employment among young people and prevent undeclared work. In addition to the age, a gross annual income of up to approximately 20,000 euros is a precondition for tax relief. Company founders are excluded from the scheme.
Incentive for Ukrainians
According to the Polish government, the law will benefit about two million people. Economists also see it as an incentive for young Ukrainians. Due to a shortage of skilled workers, Poland relies on foreign workers.
For several years, Ukrainians in particular have been migrating to neighboring Poland because of the poor economic situation in their country. According to the statistics office Poland issued in 2018 most work permits for foreigners to Ukrainians (73 percent).
There is also criticism of the tax exemption for young people. It would violate the constitutional principle of equality, Poland’s Chamber of Commerce writes in an analysis. A population group is unfounded preferred. The opposition also sees it as a further source of votes: The PiS introduced, among other things, an extension of child benefits and an additional pension for seniors.
