The tax was previously cut to zero as part of efforts to curb inflation.
The reduction kicked in on February 1, 2022 after it was overwhelmingly approved by both houses of parliament.
On Tuesday, Poland’s finance ministry announced that, after considering “the latest data on inflation and forecasts for the prices of basic food products,” it decided "not to extend the cut" beyond March 31.
Polish food producers responded by saying that the ministry’s decision would cause food prices to increase for consumers, but experts from the Polish Economic Institute said the move would result in only a temporary rise in prices.
The Polish central bank's rate-setting Monetary Policy Council left interest rates unchanged last Wednesday, keeping the reference rate at 5.75 percent.
Last year, the panel slashed key interest rates by a combined 100 basis points, amid signs of subsiding inflation.
In 2021 and 2022, the Monetary Policy Council had delivered a string of rate hikes in an effort to contain surging consumer prices.
Inflation in Poland stood at 3.9 percent in January, down from 6.2 percent in December, according to an estimate by the country’s statistics office.
Poland’s central bank chief Adam Glapiński said in November that the country's interest rates were unlikely to rise anytime soon.
(tf/gs)
Source: IAR