The government officially confirms plans to introduce a fresh digital taxation in Poland. The Ministry of Digital Affairs, headed by Minister Krzysztof Gawkowski, announces that the tribute will include the largest global technology companies, which make immense revenues on the Polish market. The proposed rate is to be 3 to 6 percent, which aims at equalising the chances between abroad giants and native businesses. This is simply a groundbreaking declaration that ends many years of discussions and announces real changes in the country's fiscal system.
This initiative responds to the problem of taxation avoidance by multinational corporations, which frequently pay symbolic amounts in Poland, despite achieving billions of profits. The government argues that the deficiency of adequate regulation leads to losses for the state budget. The key question that millions of Poles are now asking themselves is: will the costs of the fresh taxation be yet passed on to consumers? The emergence in the prices of popular services specified as streaming platforms, social media and cloud services seems to be a very likely scenario.
What is simply a digital taxation and who precisely will it cover?
The digital taxation is simply a peculiar tribute to the revenues of the largest technology companies that supply digital services in a given country. The Polish proposal refers to the inclusion of entities whose global gross exceeds a certain advanced threshold, and a crucial part of it comes from the Polish market. In practice, this means that there will be a fresh work for giants like Google (Alphabet), Meta (Facebook, Instagram), Netflix, Amazon, Apple or Spotify.
The main nonsubjective is to bridge the taxation inequality. presently Polish technology companies pay CIT income taxation in Poland on all their profits. Meanwhile, global corporations, thanks to complex legal structures and taxation optimization, frequently transfer profits to countries with lower taxation, alleged taxation havens. fresh tribute, charged revenue and not profitIt's expected to prevent specified practices. The proposed rate in the 3-6% scope is to be a compromise between effective budget power and maintaining the attractiveness of the Polish market.
The government underlines that this is simply a step towards fiscal justice. The Ministry of Digital Affairs argues that companies making immense money on Polish users should contribute more to the financing of public services, which they indirectly use, specified as digital infrastructure or education.
Poland follows Europe. Why is the government speeding up work?
The decision to introduce a digital taxation in Poland is not an isolated action. It's part of a wider global trend. akin solutions already work successfully in many European countries, including France, Spain, Italy or large Britain. They considered that they could no longer wait for a global agreement on this substance and implemented their own national regulations.
The European Union's attitude has besides become an impetus for the Polish government. Work on a single, pan-European digital taxation is stuck. As Minister Krzysztof Gawkowski stressed, the withdrawal of Brussels from this task is not a reason to abandon, but, on the contrary, states: signal to take a stand-alone initiative. Poland no longer wants to lag behind, losing possible billions of zlotys that could power the state budget.
The urgency of implementing the fresh rules is due to the increasing scale of the problem. The digital economy is increasing rapidly, and the technological gains of giants are increasing year by year. Each period without appropriate regulation is simply a real failure to public finances. The government wants to seal the strategy as shortly as possible and supply a unchangeable origin of income that could be spent on key social investment.
What are the real consequences for Poles?
Although the digital taxation is directed straight at corporations, its effects will surely be felt by average citizens. The most likely script is shifting the costs of the fresh levy to end users. Experience from another countries shows that companies specified as Google, Apple or Amazon almost immediately after the introduction of akin charges raised the prices of their services.
What can we anticipate in Poland? These are possible changes:
- Higher subscription prices: Monthly subscriptions for streaming platforms specified as Netflix, HBO Max, Disney+ or Spotify can increase by respective zlotys.
- More costly Apple and Google services: Provisions in App store and Google Play stores can increase, which will translate into higher application prices and micropayments in games.
- Increase in advertising costs: tiny and medium-sized Polish companies that advertise on Facebook or Google can pay more for campaigns. This cost is likely to be included in the final price of the products and services offered by these companies.
On the another hand, the government argues that additional budget revenues, estimated at up to respective 100 million PLN per year, will be allocated to public purposes. This means possibly better backing for wellness services, education and infrastructure. In the end, Poles will be faced with a choice – whether they accept somewhat higher prices for digital services in exchange for greater taxation justice and better funded state.
What's next on the project? Key steps and timetable
The clear declaration by the Ministry of Digital Affairs is only the beginning of the legislative path. Now the task must go through respective key stages. They will be held first. detailed consultations with the Ministry of Financewhich must measure the budgetary implications and make a precise taxation collection mechanism. This is the key minute that will decide the final form of the rules.
The government will then gotta prepare an authoritative bill to go to the Sejm. The parliamentary process will include work in committees, plenary debates and votes in the Sejm and the Senate. Given the importance of the project, a lively public discussion and intensive lobbying by technology companies can be expected. The final step will be the president's signature.
Although the authoritative agenda has not yet been provided, the government's determination suggests that work can accelerate. If the legislative process goes smoothly, new rules could come into force as early as 2025. For millions of Poles this means that changes in the prices of favourite digital services may be expected soon. It is worth following up on further reports.
Continued here:
The government confirms the fresh tax. Prices for Netflix and Google go up?
