Polish finance minister resigns as new tax system stumbles
Poland’s main ruling party says the country’s finance minister has resigned over ‘loopholes’ in the new tax system which have led to a drop in the take-home pay of many professionals
Finance Minister Tadeusz Koscinski was taking responsibility for the much-criticized tax system and his resignation has been accepted by the party leadership, Anita Czerwinska said. spokesperson for the Law and Justice party. She spoke after hours of closed-door debate between party leaders, including party leader Jaroslaw Kaczynski and Prime Minister Mateusz Morawiecki.
Morawiecki will also serve as acting finance minister until a replacement is found.
The decision comes at a time when deep divisions have been revealed within the main party of Poland’s right-wing government and the position of Kaczynski, the main policymaker, appears to be weakening. The unpopular tax system, soaring energy and commodity prices, and revelations about Pegasus spyware surveillance of government critics have reduced support for the ruling party to its lowest level in years .
The new tax system of the Polish Order came into effect on January 1, aimed at increasing the net income of people with low or modest incomes. The government advocated it, saying it would benefit almost 80% of Poles.
However, the complex rules and lack of clear guidelines meant many professionals received less money and the government scrambled to fix the system.
Last week, Kaczynski admitted that those implementing the new tax system “didn’t have it entirely under control”.