Poland's ruling conservatives are likely initially to raise the personal tax allowance only for those with lowest earnings because of budget considerations, Prime Minister Beata Szydlo was quoted as saying late on Friday. The right-wing Law and Justice (PiS) party made increasing the personal allowance one of its election pledges last year but Szydlo said legislation would focus first on low earners and leave higher earners for later consideration.
Analysts say that raising the allowance to about 8,000 zlotys (about $2,000) from about 3,100 zlotys now, as promised by PiS, would force the deficit above European Union's 3 percent limit in 2017, if all taxpayers were immmediately to be included. "Taking into account the possibilities of the state budget ... the personal tax allowance will most likely be differentiated in such a way that we will include subsequent (earnings) groups in .. following years," Szydlo told private television Superstacja.