- On Tuesday, the Minister of Finance, Tadeusz Kościński, in a letter to the Commissioner for Economy, called for the possibility of temporarily applying a reduced VAT rate on fuels in Poland.
- This is another of our actions in response to rising fuel and electricity prices.
- An element of the Anti-Inflation Shield is also, inter alia, VAT reduction on gas, electricity
and heat.
The letter on the reduction (from December 20, 2021 to May 31, 2022) from 23% to 8% VAT on motor fuels (including diesel oil, biocomponents constituting intrinsic fuels, gasoline, liquefied LPG) is the first stage of activities taken by the government.
Increasing prices make the costs of transport, supplies, as well as goods and services, including basic ones, such as food, more expensive. The trend of increasing prices of motor fuels has a direct impact on the inflation phenomenon.
Due to the fact that the increase in fuel prices translates into the prices of goods and services, lowering the VAT rate on fuels could contribute to limiting the negative effects of the increase in prices on basic necessities, which mainly affect households and families. Hence my letter to Commissioner Gentiloni about the possibility for Poland to introduce a temporary lower VAT rate on fuels
– explains the Minister of Finance Tadeusz Kościński.
This would be a temporary sector-specific measure to contain the effects of high inflation
– the head of the Ministry of Finance indicated in his letter.
The measures implemented by the Ministry of Finance in the field of VAT also provide for a reduction of this tax from January to March 2022 for:
- gas supplies (from 23% to 8%) – for the budget it costs about PLN 0.7 billion, the changes will benefit over 9 million households,
- electricity (from 23% to 5%) – for the budget it costs about PLN 1.15 billion,
- thermal energy (from 23% to 8%) – about 6.5 million households will benefit from the changes, for the budget it costs about PLN 0.5 billion.
The remaining ones are changes in the excise duty. More information in the press release .
Source: gov.pl
