Constitutional Tribunal: Poland’s tax-free unconstitutional
PR dla Zagranicy
Poland's standardised tax deduction at the level of PLN 3,089 is unconstitutional, and will expire on 30 November, 2016, the Constitutional Tribunal ruled on Wednesday.
The challenged provisions lack a mechanism adjusting the level of the standardised deduction that would guarantee income at the level of subsistence, the Tribunal ruled.
The constitutional challenge had been submitted by Poland's Ombudsman, who claimed that the current law infringed on the principles of social justice and protection of private ownership.
The PLN 3,089 standardised deduction was last indexed in 2006 and implies taxation of income below the subsistence level, set at PLN 6,504 annually, the ombudsman argued.
The increase of the standardised deduction was one of the campaign promises of President Andrzej Duda and is part of the policy platform of Law and Justice (PiS), the party which came out victorious from the Sunday parliamentary election. (rg/rk)
The article was provided by financialobserver.eu: