On 27 June 2016 the IMF published a report following the conclusion of consultations under Article IV of the IMF’s articles of agreement.
Poland’s economy has been performing strongly. Growth in 2016 remains strong and is projected to accelerate to 3.7% in 2017 with strong private consumption supported by the new child benefit scheme. More moderate growth is expected in the medium term.
The IMF is concerned that the new bank asset tax could affect credit expansion and growth. The report encourages the government to assess the effectiveness of the new tax and make adjustments to its design where necessary. The IMF also considers that the government should consider a more growth-friendly tax.
The IMF recommends maintaining the value added tax (VAT) increase implemented in 2011 and reducing the gaps in VAT policy and compliance. The government’s plan to strengthen the tax administration is therefore welcomed.
The government is also encouraged to put through structural reforms with the objective of boosting productivity and inclusive growth. Plans to increase access to vocational training and promote innovation, with tax incentives targeted at start-up businesses, are therefore welcomed.
