The government is preparing cuts and fresh taxes. Millions of Poles will feel this in the autumn of 2025!

dailyblitz.de 7 hours ago

Poland stands at the threshold of profound financial changes which can affect almost all citizen. According to the latest, urgent study by the Organisation for economical Cooperation and improvement (OECD), the second half of 2025 will bring the country a painful adjustment of the course. increasing social, wellness and defence spending, despite average economical growth and falling inflation, forces Poland to necessary adjustment of fiscal policy. Without the warnings of experts, we are threatened by an expanding budget deficit and excessive demand, which can fuel the inflationary spiral again.

This is simply a clear signal: either the government decides to cut drasticly or to put fresh burdens on citizens. Yeah. ‘difficult autumn’, which analysts talk of, are not only higher bills, but besides a thorough redesign of the taxation strategy and social benefits. Prepare for changes that directly affect your wallet.

Here comes the wave of raises. End of government shields

Although the forecasts for Polish GDP for 2025 indicate average growth in the order 3.4%This situation can turn around quickly. The key minute will be the second half of 2025, erstwhile the government plans withdraw most of the forms of support for citizens, introduced as energy shields. That means 1 thing: much higher accounts.

Experts inform that erstwhile these shields have been removed, inflation may again above 5%. In practice, this means that Poles will feel it straight in their home budgets. Expected increases in electricity, gas and heating prices. In addition, rising fuel costs can increase even more by affecting prices of transport and products in stores. This is simply a real threat to the purchasing power of millions of households.

A taxation revolution? What the OECD prepares for Poland

The OECD study leaves no illusions: to keep financial stability, Poland must not only reduce expenditure but besides increase the gross of the state budget. This means painful decisions regarding the taxation system. Among the proposals that can become a reality, appears reform of the property tax. Now based on the surface, it could be converted to value tax, which would mean higher burden for owners of more costly properties, especially in large cities.

Another point that can hit Poles' wallets is increase in excise work on fuelwhich will straight translate into higher prices at petrol stations. OECD besides suggests taxation of vehicles by exhaust emissions and limitation of preferential VAT rates. These changes, although motivated by the request to increase influence and concern for the environment, will consequence in increases in prices of many goods and services, affecting The cost of surviving of millions of Poles.

Social benefits under scrutiny. Who's gonna lose the most?

One of the most delicate areas to be reviewed is social benefits. OECD clearly indicates the request restrictions on transfers for people with higher income. Although the study does not specify which programmes will be subject to changes, it is expected that the government will make hard decisions on specified benefits as family benefits or subsidies.

The nonsubjective of these actions is to improving the efficiency of public spending and channel support where it is most needed. In practice, this may mean that wealthy families may lose any of their privileges. This is simply a step towards a more just system, but at the same time a painful change for those who have become accustomed to a certain level of support. These decisions will have huge influence on millions of Poleswhich have so far benefited from various forms of State aid.

The government's dramatic dilemma. The future of the Polish economy

The government faces a real dilemma: Saving public finances at the expense of citizenswhether to let further sovereign debt, which would lead to the destabilisation of the full economy in the long term. OECD experts agree – although severe, changes are absolutely necessaryif Poland is to avoid recession and keep stability. The study underlines the ambitious objective: reduction of the deficit by 1 percent point of GDP per year from 2026 to 2028. It is simply a immense challenge, requiring determination.

The deficiency of reforms would mean that Poland may not be able to bear the rising costs of social, wellness policy and Security and defence expenditure. The coming months will sometimes be key decisions that will find the form of the Polish economy. Regardless of the solutions adopted, millions of Poles must prepare for the upcoming difficulties. It is time to rethink your finances and be ready to adapt to fresh economical realities.

The coming second half of 2025 is an inevitable period for Poland and deep financial changes. OECD warnings are clear: without strong fiscal and taxation reforms, the country risks serious consequences. From higher energy and fuel bills, through the fresh structure of the property tax, to the revision of social benefits — every Pole will feel these corrections. Preparing for these challenges, knowingly managing the home budget and following up on government decisions will be crucial to the endurance of this "difficult fall".

Read more:
The government is preparing cuts and fresh taxes. Millions of Poles will feel this in the autumn of 2025!

Read Entire Article