thanks to store closings and restrictions on movement imposed on Poles by their government. In order to limit the effects of the recession, the Polish government has submitted a spending bill worth 10 percent of the country’s entire GDP. Prime minister Morawiecki has even come up with a name for the spending spree – The Anticrisis Shield. In total, the government plans to throw PLN 212bn at the Polish economy. Parliament was due to discuss on vote on the bill’s passage on Friday, March 27._x000D_
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If passed, the measures would be implemented immediately on April 1. “This is a bold plan we intend to carry out to save workplaces,” said Morawiecki at a packed press conference. “We know that many supply chains have been hit by the crisis, meaning that the virus has affected our economy. We are reacting to protect our local businesses.”_x000D_
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Despite the hype, many in the business community are skeptical about whether the help will be sufficient, or effective. During the bill’s creation, President Andrzej Duda insisted the state cover 40 percent of the average wage for employees of companies that are badly impacted by the crisis. The state will cover all social security contributions for employees of small companies, so long as they can document they suffered a loss in 2020 compared to 2019._x000D_
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Another part of the bill covers taxpayers affected by the crisis who will be allowed to deduct losses incurred during 2020 from the operating income they earned in 2019. But this will only be provided to people whose earnings fall more than 50 percent compared to the same period in 2019. _x000D_
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The government is offering financial support to the retail industry by imposing a 90 percent rent reduction or shops that are forced to close during the lockdown. On the other hand, regulations limiting Sunday trading have been loosened. The result is that shops that couldn’t open at all on Sundays and that couldn’t even re-stock their shelves will once again be able to do so._x000D_
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The anticrisis shield will provide PLN 150bn to banks to make company loans and should ease the criteria banks use to judge applicants by considering only data through the end of 2019. On top of this, during the lockdown months companies will be allowed to postpone personal income tax payments for their employees for the months of March and April until June. The quarterly VAT payment usually due on April 1 won’t have to be paid until July 1.
