800 plus only for 10 years? A new proposition on the table

This year marks the 10th anniversary of the introduction of the “Family 500 plus” program. During this decade, two significant changes were introduced. In 2019, the benefit was extended to the first child, and five years later it was increased from PLN 500 to PLN 800. There are voices regarding the need for further changes, including quite radical ones, such as the abolition of 800 plus.

Proposal to abolish 800 plus. What in return?

A bill has been submitted to the Sejm that assumes an increase in the PIT tax exemption amount to PLN 60,000. PLN, but in exchange for liquidation PLN 800 plus. Another proposal assumes the abolition of this benefit, as well as the 13th and 14th pensions, along with the abolition of personal income tax. The author of the petition in this case indicates that PIT revenues in 2024 amounted to approximately PLN 97.6 billion, and the total cost of 800 plus is approximately PLN 70 billion. If we add the costs of the 13th and 14th pensions, we have almost PLN 100 billion. – Income from PIT is almost equal to expenses for these three benefits – emphasizes the author of the petition, adding that 800 plus itself did not meet its demographic goal.

The creator of the petition also argues that the abolition of income tax means higher net income for all citizens earning income subject to PIT, simplification of the tax system (no annual PIT settlements, reliefs and complicated forms), as well as reduced bureaucracy and administrative costs.

The Sejm Petitions Committee rejected the idea, emphasizing the importance of the PIT tax as a key source of public revenue. Its liquidation would have serious consequences for the finances of both the state and local government units. In the opinion issued by the Office of Expertise and Regulatory Impact Assessment, it was noted that the author of the petition only took into account state budget revenues. The abolition of personal income tax would result not only in a significant reduction in state revenues, but also in a significant reduction in the revenues of local governments, primarily communes and cities with county rights.

As for the 800 plus itself, government representatives assure that no changes are planned in the scope of granting this benefit.

At the beginning of this month, a new 800 plus settlement period began. For parents and guardians, this means the need to submit a new application for the allowance. If they do not do it by the end of June, they will be entitled to the money only from the month of submitting the application, without any compensation for June.

The latest data from the Ministry of Family, Labor and Social Policy show that so far over 4 million applications have been received for nearly 6 million children. Approximately 6.7 million people receive the benefit.