Tax allowance law ruled unconstitutional

A law on the personal income tax threshold has been ruled unconstitutional by the Constitutional Tribunal on Wednesday and its validity expires on November 30, 2016. According to the Tribunal, the law doesn't include a mechanism that would automatically increase the tax threshold to a level corresponding to the poverty line. Currently, the tax threshold is set at PLN 3,089 a year, while the poverty line, below which it is impossible to survive stands at PLN 6,504. Poland's Ombudsman filed the inquiry with the Tribunal in October last year, arguing that the law doesn't fulfill the constitutional rule of social solidarity. The income tax threshold was increased in 2006 for the last time. Since March 2008 to March 2014, prices have grown by 17.9 percent.