The Polish government is extending its anti-inflationary shield. From February 1, for six months, further solutions will be implemented, including VAT reduction on fuel from 23 to 8%. This will be a fundamental price change, said Prime Minister Mateusz Morawiecki. The head of government also announced that the VAT rate for food, fertilizers and gas would be reduced to zero. The 5% VAT will apply to electricity and heat.
According to the prime minister, 80% growth in inflation has stemmed from external factors – rising energy prices and EU solutions involving the trading of carbon dioxide emission rights.
The head of government stated that the reasons are Russian gas manipulations, as well as the dogmatic policy of the EU, which became obvious to everyone.
One of the main pillars of the 2.0 shield is to be a reduction in VAT on fuel from 23 to 8%, which may result in price reductions of up to PLN 0.70 per liter. In addition, VAT on food will be reduced to zero.
PM Morawiecki emphasizes that this year’s cost may reach PLN seven billion. He appealed to all Polish entrepreneurs who trade in food products to lower the prices of their products by five PLN. “This is very important”, stressed the head of the government.
According to the prime minister, the mere reduction of the VAT rate on food to zero will save about PLN 45 in an average Pole’s wallet. The entire anti-inflation package will allow them to save over PLN 100.
In addition, for the next four months, a lower VAT will apply (at the level of 5%) to electricity and system heat. Shield 2.0 will solve the problem that the government did not anticipate in shield 1.0, i.e. the provision of housing in communities and cooperatives with the possibility of using gas at household prices. The total cost of all proposed solutions for the budget will amount to PLN 15 billion.
The government envisages balancing bills as of January 1; other, already operational protective instruments, originally announced for four months, will be extended to six months.
Arkadiusz Słomczyński