Proposals submitted on Monday by ZPP – Związek Przedsiebiorców i Pracodawców (Organizations of Entrepreneurs and Employers) aim at disposing of PIT, Labour Fund and the Guaranteed Employment Benefit Fund, and replacing them with Wage Bill Tax of 25 pct. It is to be paid by employers from the sum of remunerations.
As proposed by ZPP, sole proprietors would pay flat-rate income tax of 3 pct to 15 pct (depending on the business type), with 3.9 pct at the beginning. They would not, however, be able to deduct tax expenses, which would help to avoid disputes about which expenses can or cannot be included in this. What is more, instead of social and health premiums for single entrepreneurs, a public service tax of 25 pct of the average salary would be introduced. Today it would amount to 550 PLN per month. The smallest economic activity would be subject to flat-rate income tax of 15 pct, although such entrepreneurs would not pay a public service tax.
President of the Warsaw Institute for Economic Studies Maciej Bukowski said that the introduction of radical changes, especially in regard to the income side of the budget, is always very difficult. He recommended waiting for the results of similar reforms that are now being carried out in Kazakhstan. ‘Let’s postpone these experiments for now, until Kazakhstan tests them first’, he argues.
