“The Polish Order is a programme for building a fair, just and dynamically growing Poland,” stated Prime Minister Mateusz Morawiecki. “Through the programme, our country is meant to become the best place to live in Europe,” he added. The Head of the Government stressed that the aim is for Poland to become a place where its citizens can fulfil their aspirations.

Higher tax-exempt amount – PLN 16.5 billion left in the hands of Poles

From 2022, we will be introducing a historic tax decrease, which will benefit nearly 18 million people. Almost 9 million citizens will stop paying personal income tax altogether. No tax will be paid by those who earn minimum wage as well as almost 70 percent of pensioners.

•    The tax-exempt amount will be increased to PLN 30,000. Married couples will have the opportunity to take advantage of a tax-exempt amount of PLN 60,000.
•    The 32 percent tax bracket will be raised from approx. PLN 85,000 to PLN 120,000.
•    A “middle-class tax relief” will be introduced. It will apply to those who work full-time and earn an annual income from employment contracts between PLN 68,412 and PLN 133,692.
•    The reform will be either beneficial or neutral for taxpayers who work under an employment contract with monthly remuneration of up to PLN 12,800.
•    A so-called “Fair Play” principle will be introduced with respect to health insurance contributions. This means that a situation where health care expenses are borne almost exclusively by employees will not be accepted.
•    A tax on large corporations will be introduced. It will not, however, burden investors and will not reduce Poland’s attractiveness for investment projects. It will only be paid by those companies which try to evade paying taxes in our country.

How much will Poles benefit from the changes? A cashier who earns PLN 3,000 gross, i.e. PLN 2,203 net, will gain approx. PLN 1,840 per year, while a hairdresser with an income of PLN 4,000 gross, i.e. PLN 2,480 net, will save approx. PLN 2,000 per year.

The reform will also be beneficial for families. A 2+2 family, where the parents collectively earn a total of PLN 6,500 gross, i.e. PLN 4,900 net, will, provided they file a joint income tax return, gain PLN 328 net per month, meaning almost PLN 4,000 per year. The couple will also be able to deduct a tax relief for two children of PLN 2,200.

Status: Approved by the Council of Ministers on 8 September 2021. Entry into force on 1 January 2022.

Pension up to PLN 2,500 exempt from tax

After lowering the age of retirement and introducing the 13th and 14th pensions and a free drug programme for senior citizens, the time has come for another giant step to support pensioners. Under the tax reform, we will be making pension up to PLN 2,500 exempt from tax. Senior citizens whose benefits are higher will pay tax only on amount exceeding PLN 2,500. The changes will be beneficial for 90 percent of pensioners, and nearly 70 percent of them will not pay any tax at all.

How much will senior citizens benefit?
•    A pensioner who receives a pension of e.g. PLN 3,200 gross, i.e. PLN 2,660 net, will gain PLN 1,600 per year.
•    A married couple of pensioners where one of the spouses receives minimal pension, while the other an average pension, will gain PLN 2,997 per year.
•    A married couple of pensioners where both spouses receive a pension of PLN 1,800 will gain PLN 2,946.

Status: Approved by the Council of Ministers on 8 September 2021. Entry into force on 1 January 2022.

7 percent of the GDP towards healthcare

The health of Poles is paramount. For this reason, we are constantly striving to improve the functioning of healthcare in our country. It is clear that this will not be possible without increased financing. Our goal is to increase healthcare expenditure to 7 percent of the GDP over the next 6 years.

Healthcare expenditure will reach 6 percent of the GDP by 2023. Through our efforts, the healthcare system will see an additional approx. PLN 83 billion between 2022 and 2027. In 2027, healthcare expenditure in Poland will reach PLN 215 billion.

The extra funds will be allocated towards:
•    investment projects,
•    infrastructure modernisation,
•    digitalisation,
•    new staff,
•    modern therapies.

They also mean increased remuneration for medical personnel. It is also necessary to ensure stable conditions for the functioning of hospitals during epidemics. The changes will benefit all patients. They will have better and faster access to healthcare services at the European level.

Status: Approved by the Council of Ministers on 30 July 2021. Parliamentary works are currently ongoing.

Removal of limits related to specialists

One of the main healthcare problems are long queues to see specialists. For this reason, from 1 July 2021 we have removed all hitherto applicable limits related to financing of consultations with specialist physicians by the National Health Fund.
•    Every patient who reports to a physician under outpatient specialist care (AOS) will receive adequate help.
•    This refers both to conservative consultations and expensive diagnostic tests, such as colonoscopy or gastroscopy (until now, limits were being removed only with respect to certain specialisations, first-time consultations or selected patient groups).

The changes give medical institutions a guarantee that they will receive compensation for every rendered service. It is a financial incentive to increase the number of consultations for existing patients and to provide care to new patients.

Under the Prevention 40+ programme, from 1 July 2021 every Pole over 40 can also take advantage of a free diagnostic test package. This is important, as the pandemic has significantly deteriorated disease prevention due to, among others, reduced rate of reporting to physicians in 2020. Preventive tests make it possible to detect diseases at a very early stage and avoid prolonged treatment, which is a consequence of late diagnosis.

Status: Entered into force on 1 July 2021.

Family Care Capital – PLN 12,000 for a second or subsequent child

Poland is currently facing serious demographic challenges. During the upcoming decade, our country’s population will decrease by nearly 1 million people. Our answer is an active pro-family policy which, in addition to the “Family 500+”, “Good Start” and “Toddler+” programmes, will offer Poles a new form of support under the Family Care Capital.

The solution will provide an incentive to have more children and create better conditions for their upbringing. It will take the form of support of up to PLN 12,000 for a second or subsequent child aged 12 to 36 months.
•    The support will be available regardless of the family’s income. No income criterion will be applicable.
•    The funds will not be subject to taxation.
•    The amount will be paid in monthly portions/instalments. The support will be either PLN 500 per month for 2 years or PLN 1,000 per month for a year.
•    The funds will also be available to families which on the day the solution enters into force will have a second or subsequent child aged 12 to 36 months. These families will receive support proportionally for the period starting on 1 January 2022 until the second or subsequent child turns 36 months old.

It is estimated that in 2022 approx. 600 thousand children will be eligible for support.

Status: Approved by the Council of Ministers on 17 August 2021. Entry into force on 1 January 2022.

Apartment without own contribution

Currently, many families can afford to take out a housing loan, but the requirement to provide own contribution is an obstacle. For this reason, we would like to offer Poles the opportunity to take advantage of a state-guaranteed housing loan.

Bank Gospodarstwa Krajowego (BGK) will guarantee up to 20 percent of the loan amount, not more than PLN 100 thousand, through a period of at least 15 years. Importantly, once the family has their second child, BGK will repay a part of the debt.

The loan without own contribution will be a mortgage housing loan that meets the conditions specified in legislation and will be granted by banks which join the programme under an agreement with BGK.

Both married couples and those who live alone will be able to take advantage of the solution, but only if they own no other apartment. BGK will make a one-time repayment of a portion of the guaranteed housing loan in relation to the birth of a child. This will constitute a so-called “family repayment” of:
•    PLN 20,000 – when the family has their second child,
•    PLN 60,000 – when the family has their third or subsequent child.

Status: Approved by the Council of Ministers on 8 September 2021. Entry into force 6 months after the date of publication in the Journal of Laws.

House with a footprint area of up to 70 m2 without formalities

We want to make it easier for Poles to build single-family houses with a footprint area of up to 70 m2. Building such a house will no longer require a building permit, appointment of a building site manager and keeping of a building site logbook; it will be possible via a simpler procedure of “notification with building design”.
•    These buildings should be detached and have no more than two floors. This means that these structures should in principle be small and have a simple design, which facilitates adherence to safety requirements.
•    The number of designed buildings may not exceed one per each 500 m2 of plot surface area. This condition will guarantee that the design will serve individual purposes only, and will not be used to build multi-structure estates. At the same time, it is permissible for the plot to have a surface area of less than 500 m2.
•    Building the house will require notification to building supervision authorities and project architect’s supervision over the compliance of building works with the design with a specified date for commencement of building works.

Status: Approved by the Council of Ministers on 8 September 2021. Entry into force 2 months after publication in the Journal of Laws.

Support for farmers

The Polish Order also includes a large-scale support programme for Polish agriculture. We will introduce higher agricultural fuel subsidies and make it easier for farmers to directly sell their produce.

From 1 January 2022, farmers will enjoy higher agricultural fuel subsidies:
•    the consumption limit for diesel fuel used for farm work will be increased from 100 to 110 litres per 1 ha of agricultural land;
•    the consumption limit for diesel fuel per 1 Livestock Unit (LSU) will also be increased from 30 l to 40 l.

The rules for engaging in Agricultural Retail Trade (ART) will also be changed. At the moment, engaging in ART can only be done within the voivodeship where the place of production is located or within a neighbouring voivodeship.

•    After the changes, farmers who engage in ART will be able to sell food products to retail establishments, such as stores, restaurants or cafeterias, throughout the entire country.
•    We will increase tax-exempt income from PLN 40 thousand to PLN 100 thousand. This applies to income from sale of plant and animal products processed in a manner other than industrial processing (except for products from special branches of agricultural production and products subject to excise tax).

The changes will increase the farmers’ profits and expand the options in terms of development of activities related to ART.

Status:
•    solutions related to agricultural fuel have been approved by the Council of Ministers on 30 July 2021 and will enter into force on 1 January 2022;
•    solutions related to agricultural retail trade have been approved by the Council of Ministers on 30 July 2021. Parliamentary works related to these solutions are currently ongoing.

The Polish Order Government Fund: Strategic Investment Project Programme

With the help of Bank Gospodarstwa Krajowego, we want to rebuild the economy following the COVID-19 pandemic. For this reason, we have created the Strategic Investment Project Programme, which will provide non-refundable financing for investment projects carried out by gminas, poviats, towns, cities and voivodeships throughout Poland.

New roads, sports venues, renovated schools, restored parks or projects related to water and sewage facilities – these are only some of the examples of beneficial changes which can be experienced by residents near their homes thanks to Government support.

The goals of the Strategic Investment Project Programme include:
•    stimulation of investment activity of local government units,
•    development of local entrepreneurship,
•    improvement in the quality of life of citizens,
•    creation of new jobs,
•    support for sustainable development,
•    effective involvement of financial sector.

The programme covers 35 areas of economy. The first call for applications prioritised, among others, investment projects related to water and sewage facilities, modernisation of heating systems to use zero-carbon sources and waste management as well as social investment projects, e.g. child care centres, kindergartens and cycle lanes.

The first pilot call for applications began on 2 July and ended on 15 August 2021. A total of PLN 20 billion will be allocated. The second call for applications addressed to local governments will begin in a month.
Detailed information about the programme can be found at bgk.pl/polski-lad.

Introduction of the Polish Order and the Government’s support for local governments will lead to a significant improvement in the financial situation of local governments. Their income will increase by 4.3 percent. In 2022, local government income will reach approx. PLN 146 billion (from personal income tax, corporate income tax and general subsidy). Taking into account the financing from the Polish Order Fund, income will increase by an astounding 9.6 percent.

Little Science Centres throughout the country

Playing is also an excellent way for children to learn effectively. This is evident in the popularity enjoyed by the Copernicus Science Centre in Warsaw. Creating similar initiatives also in smaller towns would be a worthwhile endeavour, especially in light of the fact that 2023 marks the 550th anniversary of the birth of Nicolaus Copernicus. For this reason and given this occasion, we are planning to build several dozen Little Science Centres throughout the country under the Polish Order.

Establishment of Little Science Centres means:
•    equalising educational chances of children and young people,
•    increasing access to science resources,
•    ensuring high quality of followed curricula,
•    building passion for science in children and young people,
•    creating new jobs.

It is planned to establish 70 Little Science Centres between 2021 and 2024. The total value of this investment project is PLN 350 million. The maximum amount of one-time financing will be PLN 5 million.
Status: Approved by the Council of Ministers on 30 July 2021. Entry into force from Q4 2021.

Further projects under the Polish Order

We are not slowing down and are already working on further projects aimed at improving the comfort of life for our citizens. We want for the Polish Order to make our country the best place to live in Europe.

Further steps in realization of the Polish Order include:
•    remuneration for healthcare personnel – we will be allocating additional billions of Polish zlotys for this purpose;
•    expansion of the crop insurance system – we will be presenting a new system for compensating losses suffered by farmers due to, among others, natural distastes;
•    development of psychological and psychiatric support following the COVID-19 pandemic – we will be allocating additional funds for this purpose and financing new treatment and counselling centres;
•    no more concretosis in cities – we will be launching a programme for making our cities green;
•    second edition of the Strategic Investment Project Programme under the Polish Order Government Fund – we will be starting another call for applications in a month.