Ruling party presents five latest economic proposals at convention

2019-09-21 13:07 update: 2019-09-28, 11:42
Photo PAP/Łukasz Gągulski
Photo PAP/Łukasz Gągulski
Poland's ruling Law and Justice (PiS) party offered its latest set of economic incentives at an election convention in the southern city of Katowice on Saturday, with PM Mateusz Morawiecki and PiS leader Jaroslaw Kaczynski making the keynote speeches.

The ruling party will reduce the social insurance burden for small companies by PLN 500 (EUR 115) a month, PM Morawiecki said, adding that the average PLN 500 reduction has been calculated for owners of small companies with monthly revenues below PLN 10,000 (EUR 2,306) and income below PLN 6,000 (EUR 1383).

The move will cost the central budget PLN 1.5 bln-2.0 bln (EUR 350 mln-460 mln) annually, Morawiecki said.

Today, the obligatory social insurance (ZUS) payment for self-employed people amounts to PLN 1,246.92 (EUR 287.52) a month, irrespective of their income.

Morawiecki also said the current ZUS payment will not be raised from the year 2020, alleviating some concerns that the government-planned raise of the minimum wage to PLN 2,600 (EUR 600) from PLN 2,250 (EUR 519) in 2020 would translate into trouble for smaller companies due to the method of calculating their ZUS contributions, which depends on the minimum wage.

However, the question remains open whether small entrepreneurs, who often employ the lowest-earners, will manage to cope with next year's 15.6 percent raise of the minimum wage.

PiS will also offer PLN 1 bln (EUR 231 mln) in direct support for strategic investments.

The funds will support strategic investments in "innovative processes," and will benefit smaller and larger firms alike, Morawiecki said.

Also, PiS will raise the revenue limit for those who want to pay the preferential 9 percent corporate income tax rate (CIT) - to EUR 2 mln from the current EUR 1.2 mln, Morawiecki announced.

Additionally, the party has pledged to gradually raise the revenue limit to EUR 2 mln from EUR 250,000 for entrepreneurs who want to pay simplified, flat-rate personal income tax (PIT). This last move will cost the state budget an additional PLN 1 bln (EUR 231 mln).

Jaroslaw Kaczynski said his party had a plan, which he called a system of various moves in different areas that together build up a growth potential.

Among the elements of the growth potential, Kaczynski first named the Catholic faith, before going on to mention the restoration of "authentic" social institutions, "not ones that would introduce alien values in Poland."

Among more tangible elements, Kaczynski mentioned financial support for families as well as "these great economic plans that are addressed to all those who want to build great things in Poland, and are also addressed to the smaller ones, whose initiative is extremely important for the Polish economy." (PAP)

jd/ jch/