According to the New Tax Order, Large Families Get an Additional Deduction

Parents with at least four children are to have an additional deduction of PLN 85,000 after the new tax order changes in the Polish Lada. It is the same as provided for in the PIT program for young people. How will this improve the situation of families?

According to economist Prof. Marek Kośna, this decision represents a move in the right direction and a solution that was needed. But one can doubt whether a similar effect can be achieved differently. The expert also emphasized the need to improve the housing situation of families.

What is Important in New Tax Order:

On Thursday, the Parliamentary Public Finance Committee considered changes to the new tax order laws to be introduced as part of the Polish Deal. It accepted, among other things, a change introducing relief for families with four and more children. The amendment was proposed by MP Włodzimierz Tomaszewski from the Republican party.

The government estimates that the cost of this relief for the budget will be over PLN 300 million, and 110,000 will benefit from it – taxpayers, i.e. approx. 55 thousand families.

Prof. Marek Kośna from the University of Economics in Wrocław assessed that so far the number of children being dependent on the family has not been sufficiently taken into account in new tax order  regulations:
– Apart from this relief, which we already have in the income tax, the number of children in the household was not taken into account in any way.

On the one hand, we have a taxpayer who creates a one-person household, and on the other hand, a taxpayer who has a non-working spouse and five children, these two cases were not distinguished. Meanwhile, these two households’ new tax order capacity and standard of living are very different.

He added that it is also beneficial to introduce a deduction limit. – This is certainly very beneficial because when someone has a lot of children to support but has a very high income, there is no reason to use additional support instruments for such a person – he assessed.