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Poland cuts VAT on fuels, food to curb inflation

01.02.2022 09:15
Poland on Tuesday cut value-added tax (VAT) on fuels from 23 percent to 8 percent, and it also slashed the tax on food from 5 percent to 0 percent as part of efforts to curb inflation.
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Pixabay LicenseImage by IADE-Michoko from Pixabay

The reductions kicked in on February 1 after President Andrzej Duda last month greenlighted a package of new measures designed to trim inflation, including cuts in VAT on food and fuels.

Duda signed the plan into effect after it was overwhelmingly approved by both houses of parliament, state news agency PAP reported.

The package, proposed by the government and dubbed Anti-Inflation Shield 2.0, will be in force for at least six months, according to officials

The cuts are estimated to cost the government up to PLN 20 billion (EUR 4.3 billion), according to Prime Minister Mateusz Morawiecki.

The Polish president in late December signed into law a set of rules introducing a one-off cost-of-living allowance to help poorer households cope with rising energy and food prices.

Inflation in Poland stood at 8.6 percent in year-on-year terms in December, the country’s Central Statistical Office (GUS) reported last month.

(gs)

Source: PAP