A new law that comes into effect in Poland this week will scrap income tax for roughly 2 million young workers under the age of 26 who earn less than 85,528 Polish zloty ($22,547) a year.
They will be exempt from the country's 18% income tax starting August 1. Last week, the lower house of Parliament approved the measure, introduced by the ruling Law and Justice (PiS) party. According to the government, the measure should cost around 2.5 billion zlotys (approximately 590 million euros). This is an attempt of the government to convince the young people to stay in the country. The government said 2 million people will qualify for the benefit.
Prime Minister Mateusz Morawiecki said that 1.7 million people left Poland in the past 15 years searching higher wages and opportunities in western Europe. "This must end, young people must stay in Poland," Mateusz said. According to Finance Minister Marian Banaś, “reducing the costs of employing people on relatively low wages will allow young people to have an easier start on the job market and people working ‘off the books’ to return to the mainstream job market”. According to U.N. predictions, the total population of Poland could drop by a staggering 40% by 2050 if nothing change. However, opposition and critics accuse the government of buying people’s votes with “populist” measures.