Poland Considers Radical Tax Overhaul: PIT Elimination Proposed in Exchange for Social Benefit Cuts
A sweeping proposal currently before the Polish Parliament suggests a fundamental transformation of the nation’s fiscal landscape, potentially eliminating personal income tax (PIT) in exchange for the removal of several high-profile social welfare programs. The plan, submitted as a petition to the Sejm’s Committee on Petitions, seeks to replace targeted benefits with a universal tax advantage for all citizens.
Under the proposed reforms, the government would abolish the “800 plus” child benefit program as well as the 13th and 14th pension payments traditionally granted to seniors. In their place, the petition suggests a complete removal of the personal income tax, a move the author argues would be nearly budget-neutral. According to the proposal, PIT revenues in 2024 totaled approximately 97.6 billion PLN, a figure that closely aligns with the estimated 97 billion PLN cost of the social programs—specifically 70 billion PLN for 800 plus, 13 billion PLN for the 13th pension, and 14 billion PLN for the 14th pension.
The move underscores a push to shift from a system of targeted social grants to a universal benefit. Proponents argue that eliminating PIT would create a fairer and more transparent system, benefiting all taxpayers, including the working population and retirees, rather than only specific demographic groups. This is further supported by data from the Ministry of Finance showing that effective tax rates have historically been significantly lower than nominal thresholds due to various deductions.
However, the transition could create financial hardship for the most vulnerable. Some projections indicate that seniors with low pensions could see their annual income drop by as much as 3,200 PLN if the additional pension payments are scrapped.
Parallel to the total elimination of PIT, other legislative discussions have focused on implementing a new tax-free allowance of 60,000 PLN. This alternative approach would similarly aim to lower the tax burden on citizens even as potentially phasing out the 800 plus and 13th pension programs by 2026.
While the fate of these broad social programs remains under debate in the Sejm, decisions regarding the potential liquidation of 800 plus and the additional pensions continue to be processed through parliamentary channels.
Simultaneously, new pro-family and elderly support measures are emerging. As of April 6, 2026, details have surfaced regarding a new child-rearing allowance that could provide seniors with up to 800 PLN. Reports from April 5, 2026, point toward a possible pro-family program starting in 2027 that could offer 200,000 PLN upon the birth of a child.
