Poland Implements Pro-Natalist Policy to Boost Birth Rate and Economy
"Benefits for High-Income Earners"... Concerns Over Limited Real Impact
Poland, which is facing a crisis due to declining birth rates, has introduced a strong pro-natalist policy. The government has decided to fully exempt households raising two or more children from personal income tax.
On October 16 (local time), Euronews and other outlets reported that President Karol Nawrocki of Poland signed the "Income Tax Exemption for Families with Two or More Children Act," which was proposed last August.
This law applies to all households actually raising two or more children, including not only biological parents but also foster parents. It will be available to families with an annual income of up to 140,000 zloty (approximately 54.64 million won), and the actual tax reduction effect is scheduled to take effect from 2026.
The presidential office projected that this tax benefit would increase the average monthly household income by about 1,000 zloty (approximately 390,000 won).
President Nawrocki made income tax reduction a central campaign pledge during the presidential election in March, stating, "Having and raising children should not be an economic burden." He emphasized, "This bill is not merely a tax benefit, but a national commitment to revive the values of family and community," adding that "we are moving toward a society where having and raising children is respected."
Poland's birth rate has sharply declined in recent years. As of 2024, the birth rate stands at 1.1, which is only half the level of 1.9 recorded in 1990. The average age of mothers at childbirth has also increased from under 23 to 29, and various government policies such as childbirth incentives and child-rearing subsidies have had limited impact.
The government expressed hope that this new law would help create the economic conditions necessary for families to have more children.
However, there are concerns that the actual beneficiaries may be concentrated among high-income households. The Polish Economic Institute (PIE) analyzed that the tax reduction effect would be limited for low-income families who pay little or no income tax.
Experts pointed out that "while this measure may increase household income and stimulate consumption in the short term, its effect on raising the birth rate could be limited."
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