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I UNDERSTAND
English Section

'Zero VAT' on food possible in Poland from February: finance minister

22.12.2021 13:00
Poland’s Finance Minister Tadeusz Kościński on Wednesday said that value-added tax on food could be reduced from 5 to 0 percent in the country effective February. 
Tadeusz Kościński
Tadeusz KościńskiMinisterstwo Finansów

In an interview with public broadcaster Polish Radio, Kościński said that “this isn’t official news yet, but according to our information, the European Commission will approve Prime Minister Mateusz Morawiecki’s request" for such a move.

Last week, Morawiecki spoke to officials including European Commission President Ursula von der Leyen about reducing VAT on food from 5 percent to 0 percent and bringing the rate down on fuels from 23 percent to 8 percent as part of efforts to combat inflation, Poland's PAP news agency reported.

It said it had learned in Brussels that decreases in VAT would be possible under the EU’s new, updated regulations, which still have to be consulted with the European Parliament.

Morawiecki told reporters on Wednesday that negotiations with Brussels were still ongoing, and that "with regard to zero VAT on food ... we'll probably be able to make specific decisions within the next few weeks” and this “will help lower inflation."  

Kościński told Polish Radio that the government had already adopted a package of anti-inflationary measures, including reductions in taxes on natural gas and electricity and a one-time cost-of-living allowance for 7 million poorer households.

He also said there were "enough resources in the budget to extend these measures."

“We need to wait and see what happens, whether inflation will rise or if we manage to suppress it by lowering VAT,” he added.

Inflation in Poland stood at 7.8 percent in year-on-year terms in November, the country’s Central Statistical Office (GUS) reported last week.

(pm/gs)

Source: IAR, PAP