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I UNDERSTAND
English Section

Poland announces EUR 2 billion anti-inflation package

25.11.2021 13:15
The Polish government on Thursday announced a new set of measures to tackle price rises, dubbed "the anti-inflation shield" and worth a total of PLN 10 billion (EUR 2.1 billion), the state PAP news agency reported. 
Polands Prime Minister Mateusz Morawiecki unveils new anti-inflationary measures at a press conference in Warsaw on Thursday.
Poland's Prime Minister Mateusz Morawiecki unveils new anti-inflationary measures at a press conference in Warsaw on Thursday. PAP/Leszek Szymański

Unveiling the package at a news conference, Prime Minister Mateusz Morawiecki said it sought to "provide help through the winter months when we expect higher inflation."

He added the measures included "significant tax decreases" and would leave more money in citizens' pockets.  

The package consists of six policies. First, the prices of fuels will be reduced until the end of May, with the excise tax lowered and fuels at the pump additionally exempt from retail sales tax, the PAP news agency reported.

Moreover, between January and March, gas customers will pay 8 percent value-added tax (VAT) instead of the current 23-percent rate, Morawiecki announced.

In addition, over 5 million poorer households will be entitled to a one-time "compensatory allowance towards the cost of living," paid over two installments in 2022. The allowance will range from PLN 400 (EUR 86) to PLN 1,150 (EUR 246) depending on household size, reporters were told. 

Meanwhile, the VAT on electricity is set to be lowered from 23 percent to 5 percent between January and March next year, Morawiecki added. Households will also see excise tax slashed to zero, while other electricity users will pay a reduced excise duty rate, the government said.

The Cabinet plans to save anywhere from PLN 3 billion (EUR 640 million) to PLN 5 billion (EUR 1.1 billion) through more efficient public spending, which is set to include a freeze on new government jobs, Morawiecki told reporters.

(pm/gs)

Source: PAP