SELECTED DETERMINANTS OF MUNICIPAL TAX POLICY TOWARD FARMERS IN POLAND, 2018-2025

Abstract

Abstract

In contemporary economies, there is no single universal model of fiscal policy. Tax systems are highly diverse and require continuous adaptation to changing economic conditions. The aim of the study was to identify and assess selected factors shaping local fiscal policy with regard to agricultural tax in Poland between 2018 and 2025. The study was based on data describing the socio-economic and spatial characteristics of municipalities, as well as agricultural tax rates. Statistical methods were employed, including structural analysis, the chi-square test, and correlation analysis. The agricultural profile of the local economy is a key determinant of the level of taxation. Municipalities characterised by a high share of employment in agriculture and a high proportion of households deriving their main income from agricultural activity are more likely to pursue a favourable fiscal policy towards farmers. Central municipalities and those surrounding large urban areas are more likely to pursue a restrictive tax policy; these municipalities are also more urbanised and exhibit a higher level of entrepreneurial activity. The findings also indicate that local tax policy towards farmers is highly persistent, with approximately 76% of municipalities consistently pursuing the same tax strategy throughout the study period.