Saturday, May 15, 2021

Poland's New Deal: more health spending, bigger tax-free quota, and much more

 The leaders of the United Right today signed the program declaration of the 'Polish Deal.' Here are the highlights of the program: 

1) Support for families

PLN 12,000, for parents of a second child, they will be able to flexibly use to cover the costs of care for the second and subsequent children between 12 and 36 months of age. Parents will choose themselves: PLN 1000 for a year or PLN 500 for two years. They will also decide on the allocation of these funds.

2) 7 percent GDP for healthcare

- in the next 6 years, health expenditure will increase to 7% GDP. 

- a new stage of digitization of the health system. Easy appointments to the doctor, including specialists, by Internet or the hotline. 

- outpatient care will be extended.

3) Tax cut for 18 million Poles

- increasing the tax-free amount to PLN 30,000

- a middle class support program will be introduced. The tax threshold for the 32 percent rate will increase from 85,000 to 120,000

- introduction of a uniform health insurance for all - regardless of the type and form of work - calculated in proportion to income (9%) without the possibility of deduction, as is the case of contract employment.

- "Middle Class Relief" will be introduced. It will apply to people employed under a contract of employment with an annual income in the range of 70,000-130,000.

4) Investments that will generate 500,000 new jobs

- modern infrastructure projects: over 2,000 km of new expressways and motorways, over 100 bridges and ring roads, reconstruction of 50,000 km of roads, many kilometers of sidewalks or bicycle paths, renovation of local bridges and thousands of safe pedestrian crossings.

- renovation and retrofitting of 700 small hospital wards a year and 200 larger ones, construction of nurseries for 10 thousand. children, hundreds of kindergartens, over 4,000 common rooms and renovations in almost 4 thousand schools.

- increase to 80 percent subsidies for the construction of nearly 300 gyms and 100 swimming pools in municipalities that do not have such facilities. Revitalization or modernization of at least 300 cultural and tourist infrastructure objects.

- 5G in all urban areas and along major transport routes by 2025

5) "My house" program

  • The Flat without own contribution program will increase the availability of financing your own flat. It will cover three groups of people: those who want to have their first secondary, primary, social or home.
  • Own contribution for families guaranteed, provided or repaid by the state will solve the most important problem of young families and large families - lack of funds for own contribution, and thus the inability to buy your own apartment.

Construction of residential houses without a permit, construction manager, and construction book - the construction of single-family residential buildings with a development area of up to 70 m2 will be possible on the basis of a notification. The construction process will be shortened by several weeks. It also saves the investor - at least several thousand zlotys.

6) Pensions without tax up to PLN 2,500

As part of the tax system reform, pensions will be increased by the amount of tax up to PLN 2,500 (2,000/year more).