17:21 16 July 2024
Min Fin: local government revenues will increase by PLN 35.2 bln y/y in ‘25
Following the implementation of the new law on local government revenues, local government revenues (JST) in 2025 will increase by PLN 35.2 billion compared to 2024, with a projected increase of over PLN 230 billion over the next decade, as announced by the Ministry of Finance. The proposal, currently under inter-ministerial and joint government and local government commission consultations, includes changes affecting JST revenues from personal income tax (PIT) and corporate income tax (CIT), set to take effect in 2025.
The restructuring will notably increase own-source revenues for local government budgets, with PIT rising from PLN 88 billion to PLN 173 billion and CIT from PLN 23 billion to nearly PLN 30 billion. Funds for local government development purposes will also significantly rise from PLN 3.5 billion to PLN 8.6 billion, marking a 245% increase. Educational needs will also be supported, with JST revenues earmarked to cover a total of PLN 102.6 billion for 2025.
