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Karol Nawrocki is the new president of Poland. What are his economic promises?
Tax reductions, an increase in the second tax bracket, and substantial investment funds are just a few of the numerous commitments made by President-elect Karol Nawrocki, who is set to assume office shortly. Analysts suggest that some of these initiatives may prove challenging to execute due to his limited authority.
The political highlight of the week will be the National Assembly’s oath-taking ceremony on Wednesday for the new President of the Republic of Poland, Karol Nawrocki.
What are Nawrocki’s promises?
From an economic and market perspective, the likelihood of a cooperative relationship between the president and the government will be vital for investors, as these institutions belong to different political factions.
On the economic side, Nawrocki declared his intention to endorse a bill that would raise the tax-free allowance to PLN 60,000, a proposal previously championed by the Civic Coalition (KO) before the 2023 parliamentary elections. However, Prime Minister Donald Tusk recently stated on TVN24’s „Fakty po Faktach” that achieving this by 2027 is unrealistic.
Karol Nawrocki, Paweł Szefernaker Marysia Zawada/REPORTERIn his campaign platform, the future president also committed to introducing a bill on his first day that would lower the basic VAT rate from 23% to 22%, along with a personal income tax proposal that would establish a 0% tax rate for families with two or more children, translating to a tax exemption of up to PLN 140,000 annually for each parent raising at least two children. Nawrocki is also in favor of reverting to the initial concept of the Central Communication Port, which is broader than the version being executed by the current administration.
Throughout his campaign, Nawrocki additionally suggested: increasing the second tax bracket by PLN 20,000 to PLN 140,000; providing family relief for entrepreneurs subjected to a flat tax (19%) and a lump sum on recorded income; abolishing the Belka tax on capital gains exceeding PLN 140,000 annually; and ensuring pensions are indexed by at least PLN 150, always surpassing the inflation rate. Nawrocki’s electoral pledges also included a 33% reduction in electricity costs.
Nawrocki has also proposed establishing a breakthrough technology development fund that would allocate a minimum of PLN 5 billion each year for advancements in safe breakthrough technologies, including AI, quantum computing, biotechnology, and drug production.
Karol Nawrocki’s Four PromisesOverview of Karol Nawrocki’s election pledges
The most significant economic commitments from Karol Nawrocki:
– Reduction of VAT from 23% to 22%, – 0% personal income tax for families with two or more children, – increasing the second tax threshold to PLN 140,000, – eliminating the Belka tax on capital gains up to PLN 140,000 annually, – indexing pensions by a minimum of PLN 150 and always above the inflation rate, – streamlining the tax system, including consolidating PIT, ZUS, and health insurance contributions into a single payment, – constitutional safeguards against cadastral tax, – proposing legislation to protect public finances from exploitation, – rejecting the Green Deal, – continuing coal extraction until transitioning to nuclear power, – establishing a PLN 5 billion Breakthrough Technology Fund, – reverting to the original vision of the Central Communication Port (CPK), – releasing state land for local governments for housing development, – creating a Patient Service Centre to reduce waiting times for medical appointments, – opposing the Mercosur agreement, – increasing defense expenditure to 5% of GDP, – endorsing legislation to raise the tax-free allowance to PLN 60,000, – reducing electricity prices by 33%.
Analysts’ views on Nawrocki’s election promises
Experts shared their thoughts on Karol Nawrocki’s electoral pledges in an interview with the business team at tvn24.pl immediately following the announcement of the second-round voting results.
Read more: The Nawrocki Era. „A Cat and Mouse Game Awaits Us” >>>
Financial analyst Piotr Kuczyński took a measured stance regarding Karol Nawrocki’s prior assertions. „It’s challenging to evaluate campaign commitments, considering the limited authority of the president,” he noted. He underscored one of his major promises: cutting electricity prices by 33% within the first 100 days of his administration.
„Claiming that a 30% reduction in energy prices is feasible is a total misconception,” he remarked. He emphasized that the president lacks the requisite power to
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