Ryszard Petru critical of the idea of a bank tax in "Rozmowa Piaseckiego" on TVN24

22558b59fb6259e6524e5bcad8e00a25, Biznes Fakty

Ryszard Petru on the rise of banking and digital taxes and their implications for consumers TVN24

– The substantial profits of banks are a result of the elevated interest rates set by the President of the National Bank of Poland, Adam Glapiński – stated Ryszard Petru, MP of Poland 2050, during the program „Rozmowa Piaseckiego” on TVN24. He also addressed proposals for new taxes. – Every tax inevitably impacts the consumer – he noted, demonstrating in the studio his perspective on the idea that the bank tax would not affect customers.

Ryszard Petru claims that „Polish banks are the most heavily taxed in Europe”.

Ryszard Petru on bank earnings and interest rates

– Every prudent central bank president at this point should outline the trajectory of interest rates for the next six months, three quarters, or even four quarters – remarked Ryszard Petru. – This is what the US central bank does, and similarly, the European Central Bank operates in this manner, yet Glapiński explicitly states he sees no room for any reductions – he commented.

– The market and financial analysts anticipate a decrease in interest rates by one percentage point in the latter half of the year, right from the outset. I would expect such an approach, especially with declining inflation, which will decrease, partly due to the strengthening of the złoty, to announce, if this occurs: „I will lower interest rates within the third quarter.” Such announcements are critically needed by the Polish economy – he assessed.

– The current situation is hindering both businesses and individuals’ ability to secure mortgage loans – he expressed.

When asked if he had spoken with Joanna Tyrowicz, a member of the Monetary Policy Council, who frequently advocates for higher interest rates, Ryszard Petru responded: – I do not interfere with the members of the Monetary Policy Council (..) I would expect the entire Monetary Policy Council to adopt a serious stance regarding the trajectory of inflation. The current scenario of very high rates in Poland contrasted with declining rates in Europe makes purchasing Polish treasury securities highly profitable, which has led to an excessive strengthening of the złoty and also contributes to lowering inflation – he explained.

Ryszard Petru on the tax-free threshold

Ryszard Petru was questioned about whether the Polish budget could withstand a revenue drop of PLN 52 billion. – It would represent a substantial loss, leading to increased public debt, higher interest on that debt, and so forth. (..) You can escalate the budget deficit until a crisis arises that overturns everything. If there were a precise moment when this would occur, we would know – he stated.

– I believe we are already facing a very high deficit and debt, so such a decision should not be made – he emphasized.

Konrad Piasecki mentioned that he was referring to the costs associated with raising the tax-free threshold to PLN 60,000. – (It would cost – ed.) at least that much – Ryszard Petru replied.

The MP was asked if, as announced, „it would be feasible to create such a budget deficit by the end of 2027”. – You know, it could be possible if we reduced the budget deficit by one percentage point each year, aiming for a deficit of around 3 percent of GDP within two years. Only then would such a decision be feasible – he said.

– I support the notion of the 800 plus program being targeted at the needy rather than the affluent. This could potentially save around PLN 20 billion. I recognize that this is not a proposal from the Ministry of Finance, so savings do not always have to equate to cuts. While challenging to implement, it is not impossible with robust economic growth and sensible budgetary policies – he remarked.

A tax-free amount funded by new taxes?

Ryszard Petru was also inquired whether the increased tax-free amount could be financed through new taxes such as digital, banking, or cadastral taxes.

– I am opposed to this, as what is the benefit of increasing some taxes while reducing others? The end result will be that the consumer ultimately bears the cost. Naturally, the digital tax is a different matter altogether. The principle is that large corporations, which pay taxes elsewhere, do not contribute in Poland, even though they profit here. Nevertheless, every additional tax impacts the consumer in some manner – he stated.