Poland is launching one of the most significant social reforms in recent years: the country's president has signed a law exempting all families raising at least two children from income tax. The measure covers biological parents, guardians and foster families with income of up to 33,000 euros a year. According to estimates, it will allow the average family to save about 235 euros a month.
The law became a key element of the programme that Karol Nawrocki, an economist and now Poland's president, presented in the spring. He promised a "zero rate" for parents and, after winning the election in August, quickly implemented the initiative.
The tax reform is only part of a broader package called the "tax shield", which also includes lowering VAT from 23% to 22%, abolishing the capital gains tax and a more flexible system for pension indexation. The goal is to make the tax system fairer, stimulate consumption, labour activity and support families with children.
A "zero" income tax of this kind is rare. Quite the shield!
