The Polish Ministry of Finance is moving forward with a proposal to increase the tax exemption limit for the PCC (Civil Law Transactions Tax) from the current threshold of 1,000 PLN to 3,000 PLN, which has remained unchanged for 25 years. This initiative has been included in the government's legislative work agenda and aims to make the tax structure more reasonable and aligned with current economic conditions. The ministry asserts that the existing limit no longer meets contemporary standards, prompting the need for legislative change.

The PCC is a 2% tax on sales agreements, which is primarily paid by the buyer. According to Article 7, paragraph 1, point 1 of the PCC Act, the sale of movable goods such as computers, phones, bicycles, sofas, or books is exempt from tax if the value does not exceed 1,000 PLN. If the item costs more than this limit, buyers must declare the tax and pay it within 14 days of signing the contract. The Ministry notes that for many transactions just above the threshold, the costs associated with tax compliance often exceed the actual tax amount, making the current limit impractical for many consumers.

This proposed adjustment reflects a broader effort to relieve taxpayers and improve the purchasing experience for consumers in Poland. Additionally, raising the threshold is expected to encourage spending and support retail activities. By allowing more purchases to be tax-free, the government aims to provide a stimulus to the economy while reducing the administrative burden on individuals who engage in minor transactions.