Tax in Poland will be raised

opublikowano: 13-08-2007, 13:38

There are too many young retirees in Poland. The aftermaths will be terrible to all the working Poles. In 18 years, the budget will have to pay PLN 52 billion (EUR 13.7 billion) for the pensions.

Poland faces tax increases because it is not very probable that politicians limit the number of people retiring earlier. This is a problem Zyta Gilowska, the Minister of Finances, should solve today.

Nearly PLN 116 billion are spent annually to pay pensions. The premiums paid by working Poles cover only 70 percent of expenditures. In 2006, the state budget contributed PLN 24.5 billion. In 18 years, the budget gap will exceed PLN 52 billion.

“The pensions will become more equal. The difference between those paying higher and lower premiums will be smaller, but generally the pensions will be loser. The second scenario provides for a necessity to increase premiums which may be introduced in several years”, Wojciech Nagel, BCC insurance expert commented.

The expenditures are so high because there are so many young retirees in Poland. In addition, the life span is growing plus there are more and  more elderly people. Young Poles are migrating to Western Europe. The government should activate unemployed people, reduce black economy, limit the availability of earlier retirement and delay the retirement age.

Experts believe however that unless the expenditures are reduced sharply, taxes will grow. “We should get used to the fact that the taxes won’t be lower. They can be only higher”, Wojciech Nagel believed.

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