Poland’s government plans to raise the corporate income tax rate paid by banks from 19 per cent to 30 per cent in 2026, a steep increase designed to help finance what officials call unprecedented defence needs.

Deputy finance minister Jaroslaw Neneman told the state-owned Polish Press Agency that the higher rate would be temporary. “To finance growing defence spending, the Ministry of Finance plans to increase the income tax rate on banks,” he said, adding that it would be cut to 26 per cent in 2027 and to 23 per cent in later years (https://biznes.pap.pl).

Neneman said the ministry also intends to soften the separate levy on bank assets, trimming the banking tax by 10 per cent in 2027 and 20 per cent in 2028. “After that, we could consider working on modifying the banking tax,” he noted in the same interview.

A written statement from the finance ministry estimated the income-tax change would generate about 6.5 billion zlotys (US$1.8 billion) of additional revenue in 2026 and more than 20 billion zlotys over the next decade, calling it “a significant contribution from the banking sector to financing state budget expenditures”.

Warsaw has sharply increased defence outlays since Russia’s invasion of neighbouring Ukraine in 2022 and intends to allocate five per cent of gross domestic product to its armed forces in 2026. Rising borrowing costs and slower economic growth have nonetheless tightened fiscal space, prompting policy makers to look for new sources of cash.

Banks are already subject to a 0.0366 per cent monthly tax on assets as well as the 19 per cent corporate rate. Lenders have long argued that the asset levy squeezes profitability and curtails credit expansion, but the ministry said the income-tax rise would be paired with relief on the banking tax to “balance the burden.”

The ruling coalition holds a comfortable majority and has typically secured passage of fiscal legislation, though debate is expected when the bill reaches the Sejm later this year.

Poland’s banking regulator has warned that sustained pressure on profits could slow lending, but the government argues the sector remains well capitalised after several robust quarters.

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