- The government has announced the introduction of an anti-inflationary shield to help Poles in times of rising prices
- The first to be reduced is the excise tax on fuel on December 20
- From January, VAT rates for gas and electricity are to be lowered
- In 2022, the shielding allowance is also to be paid in two tranches, which will cover over 5 million households
- More such information can be found on the main page of Onet.pl
– Today we are proposing a large program of tax cuts to cushion the effects of inflation – Prime Minister Mateusz Morawiecki announced on Thursday. It was “the first series of actions”, he added.
During the conference, the head of the government emphasized that Gazprom was behind the increases in gas prices, and thus in fertilizers and, in addition, in food prices.
The prime minister pointed to three areas that hurt Poles the most:
- fuel prices area,
- energy price area,
- food price area.
Fuel excise tax reduction
In the first area, it is to be a reduction in excise duty to the minimum allowed level. – From December 20, for five months, we are implementing a reduction in fuel prices through what the state has influence: firstly, the excise tax will be reduced to the minimum level allowed in the EU. Secondly, from January 1, 2022 to May 31, 2022, also for five months, fuels will be exempt from retail sales tax. We will also implement solutions regarding the issue fee. We will exempt from the emission fee, also for five months, said the Prime Minister.
– All these actions taken together on the part of the state – because we do not directly interfere with what the oil companies and oil companies are doing – will lead to a reduction in fuel prices in the next few weeks – I hope that around PLN 20 even to PLN 28-30 – he added Mateusz Morawiecki.
Reduction of VAT rates
The head of government also announced reduction of VAT on natural gas from 23 to 8 percent The new rates will apply from January to March. Poles are to save on average about PLN 140 per quarter.
in addition the plan assumes 0 percent. excise duty on electricity and VAT reduced from 23 to 5 percent This reduction is also expected to apply from January to March.
– I would like to say that we will react flexibly. Some activities are designed for three months, others for five months. They are to help during the most difficult winter months, when we expect higher inflation, said the Prime Minister.
Morawiecki announced that he would apply for additional instruments at the EU forum that would be able to cushion the price increase.
– We will block those activities that may lead to a further increase in electricity – added the prime minister.
From 400 to 1150 PLN of the cover allowance
In the case of the third area, Mateusz Morawiecki stated that the government wanted to reduce VAT on foodstuffs to 0%, but the EU does not agree to it. In return, the government prepared a cover supplement. It will be from 400 to 1150 PLN per year. It will be disbursed in two installments. Over 5 million households are expected to use it.
The shield is to cost the budget about PLN 10 billion. The government also announces the introduction of savings in the public administration, which will result in savings of PLN 3 to 5 billion.
Jacek Sasin, Deputy Prime Minister and Minister of State Assets, also took part in the conference. – Law and Justice MPs have launched a legislative initiative to amend the Energy Law. This will allow the effects of high gas prices to be spread over a period of three years, he said.
– We are convinced that during this time gas prices will stabilize at a much lower level – he added.
The deputy prime minister emphasized that he could not imagine that the increases in natural gas that took place on the world markets and which reached almost 1000%, would be directly transferred to individual recipients.
One of the most painful components of inflation for Poles, apart from gas prices, may be the rising prices of electricity. As we have already informed in Business Insider Polska, the Energy Regulatory Office estimates that price increases in 2022 will be double-digit. Poles’ monthly bills may increase by as much as PLN 20.