Kathmandu. Governments often offer income tax breaks. However, the Polish government has completely abolished the income tax.
Polish President Karol Nawroki has approved the new law. Under this law, families with at least two children do not have to pay any tax on their personal income. The measure aims to support families, boost their incomes and strengthen the economy.
The bill was introduced in August. Families earning up to 1,40,000 zlotys annually will no longer have to pay income tax. This law applies to all parents who have legal responsibilities for their children, such as legal guardians and foster parents.
According to the president’s office, this tax exemption will benefit the average Polish family by about 1,000 zlotys per month. However, the full impact of this law will be reflected in the 2026 tax returns. That will be filed in 2027.
The reforms are part of a larger effort to reduce the tax burden on households, put more money in the hands of individuals, encourage people to work and increase spending. President Nawroki promised zero personal income tax (PIT) during his election campaign.
Nowroki announced it in March as part of his agreement with the Polish people and said he would implement it as soon as he became president. After winning the election in June, he signed the bill on August 8 and sent it to the Polish parliament.
Zero PIT is also part of a scheme called tax cover. The plan includes reducing VAT from 23% to 22%, removing capital gains tax and implementing a quota system for pension indices.
Experts say that this new tax law will benefit wealthy families the most. Piotr Juszczyk, chief tax adviser at Infact, said: “Low-income households who already pay little or no income tax will receive only modest benefits. Those with higher incomes will benefit the most. ’
Public opinion was largely positive about this decision. The September 11 discussion was attended by 476 participants. Of these, 76% supported the new law and 66% approved the economic and financial assessment presented by the president. Only about 16% strongly opposed it.
