From February 1 to July 31, the Polish government introduced a lower VAT rate which applies for food, fertilizers and gas. Pursuant to the amendment to the VAT Act, the tax on food and beverages currently subject to the 5% rate will drop to zero; motor fuels from 23% to 8%; VAT rate for gas will be reduced from 8% to 0%. This is the result of the amendment to the act on tax on goods and services adopted by the Sejm on January 13, which provides for a temporary reduction of VAT as part of the government’s anti-inflationary shield.

Announcing the solutions entering in force from today, Prime Minister Mateusz Morawiecki appealed to entrepreneurs to lower the prices of products in their stores. According to the prime minister, the cost of this solution is estimated to be from 6 to 7 billion PLN.

During today’s press conference, Prime Minister Mateusz Morawiecki emphasized that fuel prices have fallen in Poland, as he promised, despite them rising in other countries. He stressed that lowering prices, including on fuel, is “an important instrument in the fight not only for Poles’ prosperity but also against inflation.”

The prime minister once again recalled that, in the opinion of the government, the three main causes of inflation are: the pandemic, Russian gas blackmail and the “irresponsible climate policy of the European Union”.

Mateusz Morawiecki explained that during the pandemic, in order to save jobs, the government paid ZUS insurances, so-called idle time pays and introduced many other instruments. This mass of money has entered the market today. “The Polish government does not sit down with folded arms; we are doing everything in our power to lower the prices to fight this inflationary Hydra”- said Mateusz Morawiecki and reminded that before Christmas the government had lowered excise tax and had promised to lower the VAT on fuel from 23% to 8% which was implemented today.

Adrian Andrzejewski