Morawiecki: Anti-inflationary shield 2.0 will cover 0% VAT on food and VAT reduction on fuel
As part of the anti-inflationary shield 2.0, 0% VAT on food will be introduced - for a period of 6 months, starting from February 1, VAT will be reduced to 8% on fuels, and the tax on gas will be abolished, Prime Minister Mateusz Morawiecki announced. At the same time, for the next four months, VAT will be reduced to 5% for electricity and heat. The reductions are to cost PLN 15-20 billion.
"In the second anti-inflationary shield, starting from February 1 for six months, i.e. by the end of July, we are implementing further solutions - we want to lower VAT on palio from 23% to 8%. This will be a fundamental price change [...] I hope that in three, at the latest four weeks," said Morawiecki during the press conference.
"We estimate the impact on the prices of a liter of fuel, crude oil and diesel oil is around 0.60 gr, maybe even up to 0.70 gr," he said.
The prime minister informed that the VAT on food would also be lowered.
"We are reducing VAT on food to zero. VAT on food lowered to 0%. [...] This year's cost may exceed PLN 6 billion, perhaps even up to PLN 7 billion, as some estimates show," he said. He judged that "for each product, prices should fall from February 1."
At the same time, the gas tax is to be completely abolished, and the reductions are to apply to individual customers also when they are part of housing cooperatives or housing communities.
"We are also lowering VAT on electricity to 5% for the next four months and VAT on heat, so for heating apartments, we also lower it to 5%," emphasized Morawiecki.
At the same time, as part of the 2.0 anti-inflationary shield, a reduction in VAT on fertilizers to 0% was also announced.
"All these cuts together may cost the Polish budget between PLN 15 and 20 billion. It is also a very important change," emphasized Morawiecki.