Poland Shelves Costly Tax Promise Amid Strained Budget

Poland's Prime Minister Donald Tusk has decided to shelve a costly election promise to increase tax-free personal income. This decision comes as the country's budget is under strain due to higher defense spending. The government had previously pledged to raise the tax-free income threshold, a move that would have cost the budget around 9 billion zlotys ($2.3 billion) per year. However, with the increased defense spending, the government has decided to prioritize national security over the tax cut. The decision to abandon the tax promise is a pragmatic one, as the government seeks to balance its budget and maintain financial stability. Poland's defense spending has risen in response to the ongoing conflict in Ukraine, and the government has deemed it necessary to allocate more resources to this area. Despite the disappointment for some taxpayers, the government's focus on maintaining a stable fiscal position and prioritizing national security is seen as a responsible approach in the current geopolitical climate.