Poland’s government this week submitted legislation dubbed Anti-Inflation Shield 2.0 that aims to reduce VAT on fuels from 23 percent to 8 percent and cut the tax on food from 5 percent to 0 percent, according to government officials.
The lower house of parliament on Thursday approved those plans in a 438-0 vote with no abstentions, state news agency PAP reported.
The measure now goes to the Senate, the upper house of Poland's parliament, for further debate.
The planned reductions are expected to be in force for at least six months, starting from February 1, Prime Minister Mateusz Morawiecki told reporters.
The cuts are estimated to cost the government up to PLN 20 billion (EUR 4.3 billion), he said earlier this week.
Polish President Andrzej Duda in late December signed into law new rules that introduce a one-off cost-of-living allowance to help poorer households cope with rising energy and food prices.
Source: PAP, IAR, TVP Info