GDP decline in 2020 lower than expected: Fin Min

"The decline in Polish GDP last year could have been lower than 3 percent, and the budget revenues mostly exceeded the levels recorded a year earlier," Finance Minister Tadeusz Kościński said on Thursday.

“A year ago, none of us knew how bad the recession would be. In the second quarter of last year, it amounted to about 8-9 percent, and at the end of the year it may even be less than 3 percent for the last year", said Mr Kościński on Polish Radio. He also emphasised that the amendment to the 2020 budget assumed a GDP decrease by 4.6 percent.

The minister also reported that in 2020, VAT and CIT revenues were approximately 2-2.5 percent and 0.5 percent higher, respectively, while PIT revenues were lower by about 5 percent. At the same time, he noted that last year's inflation was approximately 3.5 percent.

"Revenues from PIT are a bit lower, but I would like to remind you that at the end of 2019 we reduced the tax from 18 percent to 17 percent, and for young people we reduced it to zero", concluded Mr Kościński.