Problems and challenges of the woodworking industry in Poland

26 Aug 2024

The woodworking industry plays a key role in Poland's economy, providing 6% of the country's gross domestic product. It consists of about 40,000 enterprises that create about 350,000 jobs. Due to its scale, this industry is a significant source of revenue for the state budget in the form of taxes such as income tax (CIT), personal income tax (PIT), value added tax (VAT) and social contributions (ZUS). .

In 2023, the furniture industry alone paid PLN 492 million in income tax and PLN 541 million in other taxes and fees to the state budget (according to the research institute B+R Studio). On the scale of the entire woodworking industry, these amounts are much larger.

Given the strategic importance of this sector for the finances of the Polish state and against the background of its growing problems, representatives of the woodworking industry requested a meeting with the Minister of Finance Andrzej Domanski. In a letter sent to the Ministry of Finance on July 12, 2024, they outlined the current situation in the industry, which has shown a deterioration in performance over the past two years. This has a negative impact on tax revenues to the budget. Entrepreneurs warned Minister Domanskyi that without proper changes, these revenues will continue to decrease, and asked to listen to their opinion.

Unfortunately, the Ministry of Finance refused the meeting. The lack of desire for dialogue on the part of Minister Andrzej Domansky caused concern and disappointment among representatives of the woodworking industry. They do not hide their surprise at the lack of support from the government and the lack of opportunity to discuss the situation with the minister. As entrepreneurs emphasize, the very difficult situation in the Polish woodworking industry - one of the most important for the Polish economy - requires immediate attention. That is why they decided to ask for a meeting again. In another letter sent on July 29, they once again called on the minister to listen to them.

"We hope that Minister Andrzej Domanski will finally hear us. This issue does not concern only the problems of a few companies, but is of crucial importance for the future of a huge sector of the Polish economy, which significantly fills the state budget. Our difficulties will lead to significant financial losses for Poland," says Michal Strzelecki, director of the All-Polish Chamber of Commerce of Furniture Manufacturers.

Will the Minister of Finance pay attention to the industry, which has long brought significant revenues to the budget, or will he ignore it? problems - time will tell.

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