The Government of Mateusz Morawiecki in Poland is taking a series of measures to reduce the impact of rising prices on citizens due to inflation.
Thus, this February 1, the largest tax cut in the country’s history comes into force. The VAT on fuel will drop from 23% to 8% and that on gas will be eliminated (it goes from 8% to 0%, already in January it went from 23% to 8%).
On the other hand, VAT on basic foods and fertilizers will also be eliminated (it will go from 5 and 8%, respectively, to 0%). “The total abolition of VAT on fertilizers for agricultural production is (…) a significant support for Polish food producers,” the Government stressed.
VAT on electricity will remain at 5% for six more months (in January it was lowered from 23%). Thus, the Executive has recalled that currently more than 50% of the price of electricity corresponds to the CO2 emission fee (…). “It is the real cost of the irresponsible and dogmatic climate policy of the European Union. Thanks to the changes introduced, we mitigate the effects of inflation on the cost of electricity », he added.
Poland, like all of Europe, has suffered in recent months -and continues to suffer- the rise in energy prices caused by increases in the markets and the climate policy of the European Union. Today, current fuel prices in Poland are the lowest in the European Union (an average of 1.10 euros per litre).
“Tax cuts should help fight high inflation,” said the Polish prime minister, adding that the Polish government is not sitting idly by, but “does everything possible to keep prices low and fight that inflation.” ».
The largest tax cut in the country’s history comes into force.