Local governments do not want to pay for Polish Deal

At the end of July, the Ministry of Finance published the draft tax regulations of the Polish Deal. They will not be without consequences for the finances of local governments. In the years 2022–2030, a total of PLN 145 billion will disappear from their budgets. Big cities, such as Warsaw, will suffer the most. The cost of the Polish Deal in Warsaw will be PLN 1.7 billion. Local government units called on the government to introduce mechanisms that would protect them from a radical drop in income. They want, among others greater share of local governments in PIT taxes.

"Each city has individual calculations, in the case of Rybnik we are talking about a loss of about PLN 57 million per year. We are at the stage of creating the budget for the next year and we are waiting for the indicators that come from the Ministry of Finance every year. We will see what they will be. It is known, however, that the city's current expenses are growing, which is a very important element of the budget," Piotr Kuczera, Mayor of Rybnik, chairman of the Silesian Union of Municipalities and Counties, said.

Local government officials indicate that the Polish Deal will take money from local communities to pay for services closest to residents, such as education, public transport, waste management, and sports. As a result, local government units will be forced to liquidate some services, cut investments or raise local taxes and fees.

"On the one hand, we have investment budgets and here the fears are lower. However, the problem will be the current functioning of cities. This current income is used, among others, to finance subsidies for education, public transport, and all other things that build the comfort of the city and its residents. We would like the price of this comfort to be as low as possible. Unfortunately, financing of current expenses will consume more and more amounts, which means that some will be transferred to the inhabitants," the mayor of Rybnik explained.

(Newseria)