Polish government presents post-pandemic plans of economic and social reforms

Photo: EPA PM Mateusz Morawiecki

With a view towards giving Poland a post-pandemic economic boost, government politicians on Saturday presented a number of planned economic and social reforms dubbed "The Polish Deal", dpa reported. The new initiatives were presented in Warsaw during an event rife with patriotic discourse by Jaroslaw Kaczynski, leader of the governing party Law and Justice, and PM Mateusz Morawiecki.

New proposals focused primarily on tax reform, health care, housing subsidies and new investment initiatives. Poland wants to increase the standard tax deduction to 30,000 zloty ($8,045) annually and raise the earnings cap in the lowest personal income tax threshold to 120,000 zloty per annum, from over 85,000 at present.

Pensions are to be tax-exempt up to a monthly payment of 2,500 zloty. In order to encourage pensioners to work longer, their earnings will be exempt from tax should they postpone retirement.

Health care spending is to increase from the current 5.3% of gross domestic product to 6% in 2023 and 7% in 2027.

A number of housing subsidies were announced, with the highest benefits, including partial mortgage redemption, available for families who decide to have three or more children.

"Poles deserve to live as in the West," Kaczynski said.

The creation of a new multi-billion-zloty investment facility was also announced, with focus put on, among other things, transport infrastructure, digitalization and improving broadband access, as well as clean energy and modernization of heat generation facilities.

All announced initiatives still need to be implemented through necessary legislation.

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