Differentiation of Agricultural Tax Rates in Poland From 2018 to 2022

Abstract

The aim of the study was to assess the dynamics and differentiation of agricultural tax rates in Poland in 2018-2022. Agricultural tax serves as one of revenue streams for communes in Poland, especially for less wealthy urban-rural and rural communes. However, certain communes opt to impose agricultural tax rates lower than the maximum permissible by law. This observation has prompted an investigation into the determinants of local tax policy and the correlations between specific commune characteristics and the agricultural tax rates set by their governing bodies. The source material consisted of resolutions of municipal councils and data of the Central Statistical Office. Municipalities were divided into three groups based on the agricultural tax rates applied. The study’s findings reveal that the tax policy of communes in Poland is characterized by relative autonomy in the conditions of diversified agricultural structures, economic prosperity, and the degree of agrarianization of communes. These factors have a noteworthy impact on the amount of agricultural tax rates applied by communes. Including these factors to explain the motives for shaping the agricultural tax rate allows for a better understanding of the attitude of commune authorities’ with regard to the shape of their tax policy.