The Polish prime minister announced on Tuesday that Poland will lower the value added tax on gas, food, and gasoline as part of a second package of measures aimed at easing the impact of rising inflation.
Rapid price rises have wreaked havoc on household finances, posing a problem for a government that has staked its reputation on improving living standards for regular Poles through generous social assistance.
“The program’s goal is to leave as much money in the pockets of Poles as possible,” Mateusz Morawiecki said at a press conference.
Abolition of VAT on basic food goods and gas, as well as steep reductions in VAT on fuel, heating, and electricity, are among the measures, some of which had been announced previously.
Poland has been impacted by Europe’s energy crisis, which began last year when COVID-19 limitations were lifted, putting significant demands on depleted natural gas inventories. During the winter, rising fuel prices have contributed to a cost-of-living pressure in the region.
The anti-inflation measures, according to Morawiecki, will cost the budget 15-20 billion zlotys ($3.74-4.99 billion).
Morawiecki’s ruling Law and Justice (PiS) party has had a rocky start to the year, with businesses lamenting rising energy costs and errors in a flagship economic programme that was supposed to lower taxes for most people but resulted in some workers, such as teachers, receiving lower paychecks in January.
Reports that institutions such as schools and hospitals were facing gas prices that were many times greater than a year ago were particularly distressing.
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