Poland to cut CIT for SMEs from 15% to 9%: PM

Poland’s prime minister on Saturday announced a plan to cut corporate income tax (CIT) for small and medium-sized enterprises (SMEs) from 15 to 9 percent, which experts said would be the lowest rate in the European Union.

Speaking at a political convention in Warsaw, Mateusz Morawiecki said his conservative government would institute a slew of new measures to make life easier for the country’s businesspeople.

In addition to cutting taxes, the government will lower social insurance contributions for small businesses, Morawiecki said.

Poland’s lawmakers in January voted through a package of regulations collectively referred to as a “constitution for business” and aiming to simplify procedures for people setting up and running their own businesses.

Morawiecki also said at Saturday’s convention that a new levy would be imposed on owners of large shopping malls and office buildings throughout the country. The levy has been approved by the European Commission, according to Morawiecki.

In another measure, the government will launch a PLN 23 billion (EUR 5.5 bn, USD 6.8 bn) plan, dubbed Accessibility Plus, to improve the living conditions of senior citizens, Morawiecki said.

He also said his government would inject PLN 5 billion (EUR 1.2 bn, USD 1.5 bn) into efforts to renovate and build roads in local areas and help finance the purchase of school supplies for children — by offering parents a handout of PLN 300 for every child under the age of 18 before the start of each school year.

Morawiecki announced all the new measures as Poland’s ruling conservatives were meeting in Warsaw on Saturday to sum up their first two years in power and outline their priorities for the years ahead.

The ruling conservative Law and Justice (PiS) party came to power after winning parliamentary elections in the autumn of 2015. Morawiecki took over as prime minister in December.

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