Will the issue of banning cash payments return in the fresh Sejm? The arguments for specified action are linked to the request to increase gross to the state budget. Limiting the anticipation of cash payments is an crucial component in expanding control over transactions, allowing taxation authorities to monitor more effectively, making it easier to detect possible taxation fraud.
Ban on cash payment: to whom and what benefits
The simplification in cash usage has a affirmative impact on the state budget, contributing to increased gross and indirectly reducing expenditure. It is not only goods and services taxation gross (VAT) that benefits from specified restrictions, although the scale of abuse in this category is the largest; VAT is the main origin of budgetary revenue.
In the private sphere, taxation on civilian law (PCC) is frequently avoided, peculiarly in the case of private loans or inheritance and donation taxation. Setting limits for cash transactions can contribute to greater transparency and fairness in these areas.
Cash payments make it easier to operate in the grey area, which may lead to avoiding paying compulsory social safety contributions to the Social Insurance Institution (ZUS) and wellness insurance contributions to the National wellness Fund (NFZ). This in turn can consequence in reduced revenues for these institutions, forcing the state budget to increase subsidies, resulting in public spending.
Reducing cash payments can so contribute to better taxation enforcement and greater fairness in the area of individual and business finance, which in the long word could affect the stableness of the state budget and reduce social safety spending.
Poles do not want restrictions on cash
Combating stricter limits on cash payments, including restrictions on consumers – private individuals, is in public opinion. It was the deficiency of public support that made the fresh limits not introduced in either 2023 or 2024.
The question that the argument will win remains open. Political realism suggests that little popular but essential changes should be introduced immediately after the elections, avoiding them from the upcoming next elections. For planned bans on cash, they can so be introduced in the coming months.
Of course, beyond restrictions and prohibitions there are also ways to accomplish political or economical objectives – through rational arguments, reliefs and privileges for those who voluntarily usage preferred solutions.
Companies and commercial institutions already usage different incentives. Non-cash transactions frequently offer deferred payments (buy now, pay later), a kind of short-term interest-free credit.
Non-cash payments make it possible to usage various payment terminals in stores and acquisition public transport tickets. Contactless payment cards make it easy to pay in taxis or usage ticket machines.
Examples of specified solutions can be multiplied. It seems that the direction of the fresh regulations, including legislative ones, should go this way. Especially since in fresh years most Poles have become bored with prescriptive governments and prohibitions, thus revealing the anticipation of the function of the state more servile than the dominant 1 – as they clearly showed during the elections to the Sejm and the Senate.
What bans on cash have been cancelled
The Act of 29 October 2021, known as the Polish Deal, introduced exacerbations on cash transactions, imposing restrictions on payment methods. The first point was the work for consumers to usage payment accounts for transactions where the one-off value exceeded PLN 20 000. In addition, in the case of transactions between entrepreneurs, any value exceeding PLN 8,000 required payment utilizing the entrepreneur's payment account.
This exacerbation has sparked discussion among economists who have noticed possible complications, especially for micro-entrepreneurs, tiny businesses, craftsmen and individuals conducting single-person economical activity. It was pointed out that inability to pay in cash could consequence in difficulties in the execution of the transaction, as waiting for a bank transfer could deter the parties to the transaction, which in turn would reduce insignificant trade.
As a consequence of these discussions, the government decided at the last minute to abolish the planned restrictions on cash payments. The Sejm subsequently passed a bill dated 16 June 2023, which cancels the provisions contained in the Polish Łada, restoring the earlier limit in the economical turnover of PLN 15 thousand.
The same law of 2021 was besides planned to introduce restrictions for consumers (Article 18) from 1 January 2024. However, given the additional burden on consumers, specified as the request for bank accounts or payment cards, and the generation of additional transaction costs, these planned regulations have been repealed.
Ban on paying in cash 2024: does it concern individuals?
In conclusion, from the beginning of 2024 there will be no limits in transactions between private individuals. Privates will be able to make payments in cash or without cash without quota restrictions.
In contrast, entrepreneurs will proceed to be subject to regulation in 2024 on how to regulate obligations related to their activities. They can pay and accept payments from another companies both in cash and without cash via a payment account.
In the case of transactions between traders, there is simply a cash payment limit. If the one-off value of the transaction exceeds the equivalent of PLN 15 1000 gross, the company cannot make the payment in cash. In specified a situation, payment must be made through a payment account. The entrepreneur must usage his payment account to transfer funds to the account of the company from which he acquires the goods or services erstwhile the value of the transaction exceeds PLN 15,000 gross.
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The cash ban is coming back. You will pay only for tiny purchases – for others only by card:
