Poland as an export power

Prime Minister Mateusz Morawiecki has visited the Mlekovita cooperative in Wysokie Mazowieckie, where he congratulated the company on exporting dairy goods to over 160 countries around the world. "I congratulate all farmers, cooperatives, suppliers and producers. We are proud of the power and expansion of Polish farmers’ business" – emphasised the Head of the Government. "The Polish people have created an excellent company. Mlekovita is a great company that exports all over the world," he added.  

The Prime Minister pointed out that the Mlekovita organisation was very much focused on cooperatives. "Cooperatives can do great work. Cooperative law makes it easier to create large economic areas," said the Head of the Government. "We are dealing with 5,000 cooperatives and 15,000 suppliers here. This is a very good example of great cooperation", he explained.

Government support in a difficult time

At a time of Russian aggression against Ukraine and the resulting energy crisis, we are helping millions of Polish families. This includes solutions created as part of the Government Anti-Inflation Shield, which we have extended until the end of 2022.

• 0% VAT rate on basic food products (reduced from 5%),
• 0% VAT rate on natural gas (reduced from 23%/ 8% (from 1 February 2022),
• 5% VAT rate on electricity (reduced from 23%),
• 5% VAT rate on system heat (heating from radiators: reduced from 23%/ 8% (from 1 February 2022),
• 8% VAT rate on engine fuels (reduced from 23%),
• 0% VAT rate on fertilizers and some measures supporting agricultural production (reduced from 8%),
• exemption from trade tax on the sale of certain engine fuels,
• reduction of excise duty on: electricity, certain engine fuels and light heating oil – up to the EU minimum.

Lower Personal Income Tax from 1 July 2022

The government wants more money to remain in Poles’ household budgets. That is why we are systematically reducing taxes.

The PIT tax paid by employees or contractors etc. was first reduced from 18% to 17%, and from 1 July 2022 to 12%. At the same time, we have maintained a high tax-free amount – PLN 30,000 – as well as the first tax threshold at a higher level – PLN 120,000.

Salary increases

In addition to tax cuts, we also care about raising the lowest wages. In 2015, the minimum wage was PLN 1750, while next year it will be PLN 3450 (from 1 July 2023). This represents an increase of almost 100%.

Thanks to good economic policies, average salaries are also increasing significantly. In 2015, the average monthly salary within the national economy was PLN 3,899. However, next year we estimate that the average salary will be PLN 6,935.

An ambitious budget for 2023

We are consulting with the Polish people regarding the suitability of the draft budget law for 2023, adopted by the Council of Ministers. The government has consistently increased revenues by effectively filling gaps in public finances, taking measures such as closing the VAT gap. This enables us to implement many programs addressed to the needs of the Polish people.

In the 2023 budget, the necessary funds have been secured for the continuation of the existing priority actions, as well as for the implementation of new ones including:

• social programmes,
• valorisation of pensions and the 13th pension,
• defence measures
• health care
• road construction and repairs.

Russian aggression against Ukraine, rising raw materials prices as well as the COVID-19 pandemic are having a negative impact on the state of the economy in many countries around the world. In this difficult time, the Government is supporting the Polish people by cutting taxes or the implementing its Anti-Inflation Shield. Despite this worldwide crisis, the Polish economy is in a stable condition. We anticipate that, in 2023, U.S. state budget revenues will amount to approx. PLN 604.4 billion, an increase of almost 110% compared to 2015.

Mlekovita

A Polish dairy company based in Wysokie Mazowieckie, Podlaskie Voivodeship. The company has been operating for over 90 years. In 1992, the existing dairy cooperative was given its current name Mlekovita, and the company's logo was developed. Mlekovita products are found in more than 160 countries around the world.