Poland to exempt the young from paying income tax

The Polish government has endorsed a bill that would abolish personal income tax for employees under the age of 26. The aim of the move is to halt the emigration of young people to Western Europe.

Speaking at a press conference on June 25, Polish prime minister Mateusz Morawiecki said that the government’s priority was to make Poland “an increasingly friendly and good place to work and live for young people, so that their prospects are better every year.” The PM voiced his hopes that the law will encourage young Poles living in Western Europe to return to home, reminded his audience that roughly 1.5 million Polish citizens have left their country since Poland joined the EU in 2004.

According to the draft legislation, Polish citizens under 26 with an annual income lower than 85,528 Polish zloty (20,072 euros per year) would not be taxed at all.

“Reducing the costs of employing people on relatively low wages will allow young people to have an easier start on the job market and people working ‘off the books’ to return to the mainstream job market. It will also help increase workforce participation among young people and reduce unemployment in that age group,” the Polish finance ministry Marian Banaś said earlier on June 25, adding that the government estimates around two million Poles will be exempted from paying income tax.

The draft legislation now needs to be passed by Polish lawmakers, which is expected to happen given the ruling Law and Justice party’s majority in parliament.