Do we have a “business-friendly government”? Which companies lost out, and which benefited a year after the elections?

• Election promises, both fulfilled and abandoned, affect the situation in the economy and entrepreneurs.
• The lack of an increase in the tax-free threshold will hit small businesses. This is over 80% of all companies in Poland. Retailers, mechanics, construction workers, and the IT industry will lose out.
• The promised reduction in health insurance contributions could affect as many as 935,000 businesses. Further reductions will be introduced from 2026.
• The “zero percent” loan program was supposed to stimulate the situation in residential construction. However, the government still cannot come up with solutions that will not disrupt the situation in the market.
• Due to the government’s ambitious climate goals, the chemical, steel, and cement production industries, among others, are taking a hit.

The reduction in health insurance contributions, the increase in the tax-free threshold, the transfer of sick pay to employers, holidays from ZUS, or the “zero percent” housing loan – these are the most important from the perspective of entrepreneurs, election promises made by the current government during the campaign. Only some of these ideas have been implemented, others are still awaiting their turn, some seem to have been completely abandoned. However, regardless of the degree of implementation of the postulates, those running their businesses have to cope in the environment that exists. Who has lost and who has benefitted after a year of the current government?

The tax-free threshold will not increase yet

One of the most awaited postulates was the promise to raise the tax-free threshold from 30,000 to 60,000 PLN. Single Business Entities were certainly waiting for it, and currently, it’s about 83% of all companies in Poland. Unfortunately, after a year of the current coalition’s rule, it has not been possible to achieve this postulate in the slightest. The ruling party cannot even currently provide an approximate date when the increase in the tax-free amount could take place.

“While the failure to fulfill this promise cannot be called a killer “blow” for Single Business Entities, it certainly is to take away a certain impulse that could have a boosting effect on our economy. We find the most micro companies in such sectors as trade, construction or car repair. These are industries whose services are used by almost all citizens. Last year there were also more and more small businesses registered in the communication and information section, due to the growing demand in the IT service area. The issue of raising the tax-free amount thus concerns ever wider business circles. The failure to fulfill this promise can cause long-term, negative consequences for these industries,” says Jerzy Dąbrowski, board member of Finea, specializing in SME financing.

Lower health contributions coming soon

The fate of the proposal to lower health insurance contributions looks a little better. The ruling coalition representatives could not agree on the final shape of this law, which was supposed to be ready by spring 2024. The government currently adopted an amendment that as of January 1, 2025, the minimum basis for the health insurance contribution for entrepreneurs would be reduced to 75% of the minimum wage.

“This relief affects over 935,000 entrepreneurs and is expected to boost the economy. In the same project, we have the promise of further lowering the contribution for businesses from 2026. We will therefore have to wait for the final effects of these actions. For now, we will be dealing with a certain transition period when entrepreneurs will have to look for solutions that will allow them to survive it safely,” emphasizes Jerzy Dąbrowski of Finea.

“Zero percent” or zero progress?

From the very beginning, the government’s announcement of the introduction of the “House Start” program and the related “zero percent” loan have aroused great interest among entrepreneurs, especially in the construction industry. Its aim was to increase the number of available flats at prices affordable to a larger group of customers.

The program was criticized because instead of facilitating real access to housing, it would lead to an increase in developers’ profits and cause instability in the market. Due to these allegations, the government still has not been able to work out a final draft of the law that could be presented to interested entities.

“Regardless of all concerns, this was a program that was naturally closely watched in the construction industry. Companies in this sector would certainly benefit from the new housing. The latest announcements say that specifics in this matter will appear before the end of 2024. Such determination of the rulers is basically the only positive signal sent towards the industry, which is also struggling with various internal problems. Long waiting for the realization of transfers for contract execution is just one of them. In the coming months, builders should not expect a breakthrough and prepare to operate in the existing conditions,” says Magdalena Martynowska-Brewczak, a board member of eFaktor, a factoring company.

Ambitious climate goals hit energy-intensive industries

Other announcements that the government has implemented or is in the process of implementing were not so emotional. The ZUS “holiday” was introduced, i.e., a one-month relief for entrepreneurs from paying social insurance contributions. The realization of the Central Communication Port construction, although it should concern many industries, also passes more silently, being seen as a project in terms of the distant future.

The energy-related issues are most certainly negatively affecting the market. Ambitious government plans related to CO2 reduction, the implementation of climatic goals and assumptions of the green deal are already impacting energy prices today, which is particularly negative for energy-intensive industries.

“Energy prices in Poland are currently the highest in the entire European Union, which particularly affects what we call energy-intensive industries, which essentially include chemistry, steel, mineral processing, and the paper industry. They are suppliers of products used by almost all other branches of our economy. The increase in prices in this sector will thus affect prices in the following ones. Therefore, virtually no industry can protect itself today from high energy costs,” concludes the eFaktor expert.

From the numerous announcements that were to make life easier for entrepreneurs, so far, the rulers have managed to implement little. Those they most eagerly await are still the melodies of the future.