Karol Nawrocki signed the taxation Act on extraordinary profits of fuel companies on 1 October, although he referred it to the Constitutional Court. The government's strategy anticipates exceeding the 55 percent of GDP threshold in 2028. Poland must so reduce the deficit, but the account must not be passed on to families and tiny businesses without reflection.
Signature with serious condition
The president signed a bill covering extraordinary profits made from March 2026 to March 2027. Simultaneously referred the provisions to the Constitutional Court in follow-up control mode. His reservations are not gone. First of all, it is to cover the income received before the entry into force of the Act.
However, the decision is more crucial than the fuel marketplace itself. Karol Nawrocki allowed a fresh burden on large companies erstwhile it was to finance a relief for drivers. He had besides agreed to increase the income taxation for banks. At the same time, he vetoed the increase in excise work on alcohol and sugar charges, defending citizens and smaller entrepreneurs against further burdens.
This line can be consistent only on 1 condition: the state will clearly separate the extraordinary tribute from the average budget patching with individual else's pocket. Signed Fuel Act does not give the government a blank for any taxation increase.
The government itself showed the scale of the problem
However, the alarm cannot be removed by a organization message. Adopted 29 September Public finance debt management strategy 2027-2030 predicts an increase in government debt from 55.3% of GDP in 2026 to 59.2% in 2029. In 2030, the rate is expected to fall to 58.3 percent.
The precautionary threshold of 55% of GDP is expected to be exceeded in 2028, which will launch procedures in 2030. Debt calculated according to the EU methodology is increasing even faster: from 66.6 percent of GDP in 2026 to 76.6 percent in 2030. The costs of handling the debt of the State Treasury were planned for PLN 107 billion in 2027. At the end of the decade, they are expected to scope 3% of GDP.
It is money that will run out of money for safety, health, investment and public services. Interest doesn't build roads or armies. The payer pays it. Therefore, the dispute over public finances concerns the sovereignty of the state and the wealth of Polish families.
Tax increases are not natural law
The increasing debt does not automatically show that each taxation must increase. This is simply a convenient thesis for power that does not want to review spending, simplify administration and end programmes of mediocre effectiveness. First, we request to show citizens the full bill and the hierarchy of the state's tasks.
Cuts have boundaries, too. Poland must finance defence, police, wellness protection and pensions. We must not pretend that economical growth itself will cover any deficit. A multi-annual plan is needed: braking current expenditure, better control of non-budget funds, simpler law for entrepreneurs and protection of investments that increase productivity.
Only after specified a review can we honestly discuss the state's income. If the government starts by raising PITs, contributions or burdens on tiny companies, it will strangle the activity of those who make jobs. Poles will then receive a double bill: higher taxes and weaker increases in wages.
The common language should be responsible
The president is right erstwhile he refuses to treat a citizen like an ATM. He besides has a work to tell the fact about the state of finances. The government cannot usage debt as an excuse for any fresh tribute, since it is itself liable for the structure of expenditure and the quality of the law.
The President's dispute with the government should step down where the stableness of the state is at stake. However, the agreement cannot mean a silent division of roles in which the government raises the burden and the head of state approves it under force of crisis.
Poland needs a simple and hard rule: first order of spending, then income decisions, always with protection of work, household and national capital. Without this, fiscal repair will turn into another operation carried out on Poles' wallets.
Sources: Polish President's Office, Ministry of Finance, money.pl.
Source: Money.
