1887

2008 OECD Economic Surveys: Poland 2008

image of OECD Economic Surveys: Poland 2008

Poland has been catching up with the rest of the OECD more quickly in the past two years, but the short-term outlook is clouded by strong excess demand pressures and rising inflation.  This 2008 edition of OECD's periodic survey of the Polish economy examines key challenges Poland faces including monetary and fiscal policies, reforming the tax system, bridging the housing gap, and rapidly improving transport infrastructure.

English French, Polish

.

Reforming the tax system to improve its efficiency

The Polish tax system is characterised by high social security contributions for both employers and employees. As a result, Poland has one of the highest tax wedges in the OECD, despite relatively low personal income tax rates. This, combined with a relatively high minimum wage and generous early-retirement and disability benefit programmes, contributes to low employment rates, in particular among low-skilled workers. The system also relies heavily on consumption taxes, whereas relatively little revenue is collected from such bases as environment externalities, inheritances and, in particular, property. One of the key implications of the tax structure is that the system as a whole is one of the least redistributive among OECD countries. This Chapter reviews the main features of the tax system and explores options to improve its efficiency, including possibilities to broaden existing tax bases as well as to shift the tax burden from labour towards less mobile and distorting sources such as property.

English French

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error