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The Polish government is presenting an ambitious package of economic and social reforms

In an effort to revive the economy quickly after the Covid-19 pandemic, the Polish government on Saturday unveiled an ambitious package of economic and social reforms, already dubbed the “Polish course”.

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Both the Prime Minister Mateusz Moraveckis and the leader of the ruling national conservative party Law and Justice Jaroslav Kaczynski took part in the event in Warsaw.

The reform package focuses on taxation, health care, housing subsidies and investment promotion.

Poland wants to raise the minimum non-taxable income to PLN 30,000 (€ 6,635) per year, but to raise the income ceiling from the minimum tax rate from PLN 85,000 (€ 18,800) to the current PLN 120,000 (€ 26,500).

Pensions up to 2,500 zlotys (550 euros) per month will be tax-free.

In order to encourage people who have reached retirement age to continue working, their income will be exempt from tax if they postpone retirement.

Expenditure on health care is planned to increase from 5.3% of gross domestic product (GDP) to six percent in 2023, and in 2027 – to seven percent.

Various housing subsidies are also envisaged, but the biggest beneficiaries will be families who have decided to raise at least three children. These families are promised partial mortgage coverage.

“Poles deserve to live in the West,” Kaczynski said while presenting the reform program.

The creation of a new investment fund of billions of zlotys was also announced, aimed at, among other things, investing in transport infrastructure, digitalisation and improving access to broadband internet, as well as in the production of so-called clean energy and the modernization of heating systems.

The implementation of all the announced reforms still requires the approval of the parliament.

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