Despite rosy claims, Ukrainians contribute little tax revenue to Poland

"Figures differ significantly from the optimistic narratives of billions flowing into state coffers"

Ukrainian women working at a Ukrainian food bar that a private foundation has opened to offer jobs to refugees, in Warsaw, Poland, Friday, April 1, 2022. (AP Photo/Czarek Sokolowski)
By Grzegorz Adamczyk
3 Min Read

New data from the Ministry of Finance sheds light on the economic contributions of Ukrainians residing in Poland. In response to an inquiry by Łukasz Warzecha, a columnist for conservative Do Rzeczy weekly, the Polish Ministry of Finance has disclosed tax revenues derived from Ukrainian citizens living in Poland.

In short, Ukrainians are not generating much in terms of tax revenue compared to the significant welfare and social costs associated with their arrival in Poland, and claims that the Ukrainians were bringing billions into Poland’s coffers are far off the mark.

The figures encompass both workers and refugees, covering the years 2022 (the year of Russian aggression) and 2023. According to the data, income tax (PIT) revenue amounted to 801.5 million zlotys (€186.4 million) in 2022, with VAT generating an additional 260.5 million zlotys (€60.6 million).

The following year saw increases, with PIT revenue rising to 997.5 million zlotys (€232 million) and VAT to 492.5 million zlotys (€114.5 million). In 2023, VAT from consumption, assuming all income is spent within Poland at an effective average VAT rate of 16.95 percent, totaled 3.7 billion zlotys (€860.5 million).

Warzecha commented, “It’s clear that these figures differ significantly from the optimistic narratives of billions flowing into state coffers and they hardly cover the expenditures associated with the presence of Ukrainian citizens in our country.”

According to the data reveled in 2023, assistance for Ukraine cost Poland between €6.5 billion to €7.5 billion in 2022, equivalent to approximately 1.5 percent of Poland’s GDP.

Meanwhile, the Sejm, Poland’s lower house of parliament, is working on amending the law regarding assistance to Ukrainian citizens.

The proposed changes include extending the possibility of their legal stay until Sept. 30, 2025. The amendment suggests several adjustments, such as phasing out the option for Ukrainians to reside in private homes starting July 1, tightening the collective accommodation system, eliminating a 300 zloty allowance for Ukrainians, making school attendance mandatory for Ukrainian children from Sept. 1, 2024, and linking family benefits for children, including the 800-plus benefit, to the mandatory school attendance of Ukrainian children from 2025.

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