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The Council of Ministers adopted a draft law extending the anti-inflationary shield until the end of 2022. In this way, it wants to mitigate the effects of price increases.
Draft of the law ready
According to the draft, the operation of the anti-inflation shield is to be extended from October 31 to December 31, 2022. This means that the reduced VAT rates on food, motor fuels, natural gas, electricity and heat, fertilisers and other measures supporting agricultural production will be maintained temporarily.
“The mere maintenance of the reduced VAT rates for the next two months will result in a loss of state budget revenues at the level of PLN 4.8 billion ” – informs the Chancellery of the Prime Minister.
Part of the anti-inflationary shield
- 0 percent VAT rates on basic food products (reduction from 5%);
- 0 percent VAT rates for natural gas (reduction from 23% and from February 1, 2022 from 8%);
- 5 percent VAT rates on electricity (reduction from 23%);
- 5 percent VAT rates for system heat (from the heating network) (reduction from 23% and from February 1, 2022 from 8%);
- 8 percent VAT rates on motor fuels (reduction from 23%);
- the sale of certain motor fuels is excluded from taxation with commercial tax;
- 0 percent VAT rates on fertilisers and some measures supporting agricultural production (reduction from 8%);
- reduction of excise duty on: electricity, some engine fuels and light heating oil – to the EU minimum.
Source: BusinessInsider
