Polish government introduces ‘anti-inflation shield’

Among the solutions to be introduced are tax cuts. [EPA-EFE/Rafal Guz]

Poles will soon benefit from tax cuts and see a reduction in fuel prices as part of the so-called “anti-inflation shield”, the government announced on Tuesday.

“Today we have started to implement the assumptions regarding the anti-inflation shield. It is supposed to protect Polish families and Polish household budgets from price increases”, Prime Minister Mateusz Morawiecki said.

Among the solutions to be introduced are tax cuts. The government is set to cut VAT on heating to 8% from 23% and will expand the recipients of the “shield allowance” to seven million households, Morawiecki said.

“If in the second quarter of next year inflation will not show significant decreasing tendencies, we will act further, we will support Polish citizens,” he added.

In the case of fuels, he stressed that in addition to the reduction of excise duty and the drop in emission fee to zero, the retail tax will also be changed.

“Fuels will not be included in the trade tax, which should reduce the fuel price by a dozen or so pennies. Together with other measures, this could lead to a reduction in fuel prices per litre by 20-25 groszy, and optimists say even by 30 groszy”, he added.

“We are implementing a shield tax resulting from price increases by various manufacturers. It will be paid in two instalments and it will be in amounts ranging from PLN 400 to even PLN 1,100, depending on the size of the household, on the size of the family”, Morawiecki said.

(Martyna Kompała | EURACTIV.pl)

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