The results of the “European taxation map” study just published show how hard and even worrying Poland is in the context of our neighbours and competitors in the region. Unfortunately, we bear the consequences of the unthought-out, chaotic and momentary actions of the current government, which alternatively of designing a taxation strategy for the improvement of entrepreneurship, consistently entangling companies and workers in the thicket of bureaucracy, rising tributes and constant uncertainty.
Poland falls light on the European taxation map
The taxation wedge in Poland is 45% – 1 of the highest in Europe and 7 percent points higher than the average in the region. This means: a immense burden on employers and workers, which causes us to lose competitiveness in the labour market, and the company's improvement ceases to pay off.
The average entrepreneur in Poland spends 334 hours a year fulfilling taxation obligations – the second worst consequence in Europe! alternatively of investing in development, entrepreneurs fight bureaucracy and changing interpretations of regulations.
CIT taxation – 19% of the standard rate is not a tragedy, but competition does not sleep: Hungary – 9%, Bulgaria – 10%. For tiny taxpayers 9% in Poland is only theoretical breath. The administration truly decides, not the bill.
The VAT rate 23% belongs to the highest on the continent and the taxation relief strategy is not efficient and hard to apply.
Officials and the strategy are besides guilty, but the government is in charge!
Despite the nicely packaged declarations of the government on deregulation, digitisation and support for entrepreneurship, our regular life is the instability of the law, the constant changes in regulations and excessive checks. Entrepreneurs emphasize that in Poland the problem is not only the complicated law, but besides the way the administration operates: it is dominated by reasoning "how to catch a payer wrong", alternatively of a partnership approach.
Contrary to the announcements of digitalisation, the reality is that Poland is losing to unstable and unpredictable taxation regulations. The government has not solved the most crucial problems: overloading laws, deficiency of reliable public consultation, short vacatio legis or conflicting interpretations of taxation authorities.
There is no real improvement here
It is no secret that Poland was ranked 31st among 38 OECD countries in terms of the competitiveness of the taxation system. This mediocre consequence is the responsibility of many years of negligence, but it was the current power that had all the tools for real change and consistently did not usage them.
Time for bold decisions – not for further half-measures!
The current government had a chance for a breakthrough taxation reform, and chose the simplest way: fixing the gap in the budget at the expense of entrepreneurs and workers, further regulation and frustration alternatively of relief and development. This is simply a serious mistake, which we see in all hr lost on bureaucracy and in all subsequent study that puts Poland at the bottom of rankings.
That's why I appeal: it's time to halt sweeping problems under the carpet! The government needs to decision on with a real improvement that will simplify the law, the marathon control break and make Poland start winning economical races in Europe – alternatively than losing them at the start.
Paweł Wołoszczuk
