Flat rate tax may be a disadvantage to some
According to Rzeczpospolita analysts, if a flat rate tax is introduced, the people with most to lose, would be those with a monthly income of between zł. 1,200-3,000, which represents around 60% of the laborforce. Such a fiscal reform would, however, be welcome by those who currently do not take advantage of tax incentives, and whose monthly income exceeds zł. 840. According to Finance Ministry data, 95.18% of the 23.8 million personal income tax payers fall into the first category and their annual income does not exceed zł. 37,024. At present, this group is subject to 19% tax, but in real terms this is just 13% when all the tax breaks are included. The flat rate tax would be most favorable for the third bracket PIT payers, who represent 1% of all PIT payers and have an annual income of over zł. 74,000. The tax would also be favorable for full time workers. (Rzeczpospolita, p. B1) J.K.