Public dispute over Polish Deal rollback

A sharp policy division surfaced within Law and Justice (PiS) after party leadership pledged to dismantle the health contribution regulations introduced under its own government in 2022. During the PiS economic congress on 3 October 2026, party representatives presented proposals to reinstate pre-2022 flat-rate health contribution rules for entrepreneurs. Former Prime Minister Mateusz Morawiecki publicly rejected the platform, comparing the measures to market reforms from the era of Leszek Balcerowicz and arguing that wealthy professionals would gain significant tax cuts at public expense.

PiS lawmaker Przemysław Czarnek, who served as education minister in Morawiecki's cabinet, rejected the former prime minister's opposition during a television broadcast on 6 October 2026.

“Prime Minister Morawiecki, respect yourself and analyze reality rather than throwing out these kinds of statements. This is a frustration that is completely unnecessary.”

Czarnek confirmed the party's intention to return to previous regulatory settings and eliminate what he called a policy error that hurt micro-enterprises, extending a formal apology to business owners.

“This was a mistake. We said from the beginning that it was a mistake. We apologize to entrepreneurs and we will fix it.”

Entrepreneur health levies and reform mechanics

The 2022 Polish Deal overhaul ended the previous mechanism that allowed taxpayers to deduct 7.75% of a 9% health contribution from income tax, leaving an effective 1.25% net burden. Under the Morawiecki government's reform, businesses faced non-deductible health contributions of 9% on the standard progressive tax scale, 4.9% under the flat income tax, and three fixed monthly rates for lump-sum filers. PiS Member of the European Parliament Daniel Obajtek defended the rollback on 6 October 2026, describing the 2022 rate increase as a damaging decision that restrained fast-growing firms.

“This is obviously an incorrect opinion. These are very good proposals. These are proposals that will allow us to develop significantly faster.”

Addressing criticism that lower entrepreneur contributions undermine social solidarity with salaried employees, Obajtek argued that entrepreneurs assume personal financial risk and carry a higher total tax burden. Obajtek also argued that allocating more funding to the National Health Fund (NFZ) without structural healthcare reform amounted to pouring resources into a leaky bag, estimating the revenue impact of the proposed concession at 3.5 billion PLN.

Pre-2022 effective rate1.25%

Polish Deal flat tax4.9%

Polish Deal standard scale9%

Pre-2022 effective rate

1.25 %

Polish Deal flat tax

4.9 %

Polish Deal standard scale

9 %

Data from the article text

Fiscal estimates and healthcare funding concerns

Financial analysts warned that unwinding the health contribution system threatens the stability of public healthcare financing. Dom Inwestycyjny Xelion analyst Piotr Kuczyński pointed out that the 2022 reform generated over 80 billion PLN annually for the NFZ, arguing that rolling back contributions would worsen the fund's existing deficit.

“The Law and Justice proposals regarding the health contribution remind me of an arsonist who sets fire to a house and runs first to extinguish it.”

Prof. Mariusz Andrzejewski, who presented the PiS economic plan, estimated the direct annual cost of the entrepreneur health contribution rollback at 5.2 billion PLN. An accompanying party proposal to permit immediate, full expensing for all business purchases, including commercial vehicles, would reduce state revenue by an estimated 40 to 43 billion PLN annually. While Andrzejewski calculated the total cost of the package at approximately 50 billion PLN, Grant Thornton tax adviser Małgorzata Samborska noted that the actual fiscal impact could be two to three times higher because the platform lacks identified funding mechanisms.

Political fallout and coalition responses

The internal dispute drew immediate responses from governing coalition politicians and policy institutes. Energy Minister Miłosz Motyka noted on social media that Czarnek previously voted in favor of the Polish Deal legislation, while Civic Coalition parliamentary leader Zbigniew Konwiński commented on the growing distance between Czarnek and Morawiecki. Katarzyna Pełczyńska-Nałęcz criticized the proposal as stripping tens of billions of zlotys from healthcare to benefit high earners.

Economic Freedom Foundation head Marek Tatała questioned why former cabinet members did not oppose the 2022 tax changes during Council of Ministers meetings, while Republican Foundation president Marek Wróbel observed that internal friction allows party figures to trade blame for past governance decisions.