If further anti-inflation measures are needed, the Ministry of Finance does not rule out the use of tax instruments. It could be the case because the inflation has not been this high in Poland in 24 years. The ministry analyses the situation and are considering extra actions, among others further cuts in VAT, said Deputy Finance Minister Piotr Patkowski.
“I would like to assure you that the Ministry of Finance is analysing all postulates regarding anti-inflation measures, including the introduction of further reductions in VAT rates. If there is a need to take further such actions, it is possible that tax instruments will be used for this purpose” , wrote Patkowski in response to a parliamentary question.
Lower VAT as anti-inflation in Poland
Earlier, the Act of January 13, temporarily lowered, among others the following rates of value added tax (VAT) – up to 8% for motor fuels, up to 0% for natural gas, up to 5% for electricity and heat.
The introduced reduction in VAT rates on fuels is a continuation of the solutions for the reduction of excise duty on these goods introduced in the first anti-inflationary shield – pointed out the deputy minister.
Special solutions to protect fuel
He also emphasised that the Act of January 26, 2022 on special solutions to protect fuel consumers provides for tariff protection in connection with the situation on the gas market of households, housing associations and housing cooperatives and other collective entities supplying residential premises with gas fuels.
The Act also protects some sensitive entities, including hospitals, schools, kindergartens and voluntary fire brigades.
The Polish goverment will also start helping borrowers this year his year and there is a deficit in the state budget.