Spectrum cadastral tax returned to public debate. All thanks to the latest recommendations International Monetary Fund (IMF) and OECDwho believe that in Poland property owners pay besides low taxes. So are we facing a fresh taxation work that will importantly burden the household budget of millions of citizens?
IMF and OECD: Time for real property taxation reform
In published posts IMF and OECD There is simply a clear demand: Poland should consider introducing cadastral tax, i.e. 1 that would be charged not from the surface, but from the marketplace value of the property.
According to these organisations, the current fiscal burden of having a home or flat is inadequate to the value of assetswhich Poles have. The analysis shows that in many OECD associate States there are importantly higher rates of property taxation – in the form of cadastral tax.
How much could we pay? Simulations origin anxiety
Although there is no authoritative draft bill or circumstantial thresholds at this stage, it is themselves estimates and possible scenarios origin serious concerns in society. For example:
- House worth PLN 500,000 – possible yearly tax: PLN 5 000
- House worth PLN 1,000,000 – possible yearly tax: PLN 10,000
That means the fresh strategy could drastically increase the burden on property owners, especially those who acquired them many years ago, and present their value has increased importantly – for example due to location or marketplace situation.
Ministry of Finance speaks: for now it is not a government project
In the face of the increasing speculation, the Ministry of Financewhich demented information on ongoing work on the introduction of cadastral tax. As highlighted, the current no formal legislative action is carried out in this respect.
At the same time, the ministry did not explicitly mention to the advice of the IMF and the OECD, which may propose that the subject will be analysed in the longer term, even in the context of the request to seal public finances or discuss taxation justice.
Why is the subject coming back? economical and fiscal context
The cadastral taxation is simply a subject that has been recurring in the Polish debate for years. The main reasons are:
- Low efficiency of the current property taxation system, which is dependent on metre and not on marketplace value.
- Pressure on expanding budgetary revenue, peculiarly in the face of increasing debt and the request to finance social programmes.
- Tax equality – presently people with very different properties frequently pay akin rates, which is judged unfair.
According to experts, introduction of cadastral taxation may make sense in the long term, but only with decently designed thresholds, reliefs and protective mechanisms for the poorest.
Experts: The request for caution and broad social debate
However, economists and analysts observe that Rapid implementation of specified a improvement can lead to severe social tensions, especially among older people who have advanced value properties but have low income.
The debate besides suggests that the possible cadastral taxation should cover only:
- second and subsequent dwellings
- investment property
- holders of luxury homes
This option could mitigate social impacts and better fit into the rule of taxation justice.
Cadastral taxation – what next?
Today, there are no binding decisions concerning the introduction of cadastral taxation in Poland. However, The specified fact that the subject returns to the agenda in recommendations from global institutions, a the Ministry of Finance does not exclude analysis specified solutions make it worth tracking developments.
The introduction of specified a tribute would require:
- broad public debate
- analysis of economical and social impacts
- legislative and systemic changes
For now. The Ministry of Finance ensures that no formal work on cadastral taxation is carried out.
Continued here:
New home tax? 10 1000 dollars a year! Government speaking
