– We have been implementing new solutions for 6 months since February 1. With 23 percent at 8 percent we want to lower VAT on fuel. Poles will see lower prices on pylons at stations in 3-4 weeks – the Prime Minister informed and explained that he was counting on a price drop of PLN 0.60 per liter. The next step is to completely exempt gas from VAT.
– We reduce VAT on food to zero. The annual cost of this solution may be PLN 6-7 billion, but it is very important and I appeal to all entrepreneurs who trade in food products to lower prices by PLN 5 – added the Prime Minister and argued that this would allow the average Polish family to leave 45 PLN per month. The reduction applies to those products that are now subject to a 5% rate. The solution is to apply from February 1 to the end of July.
The VAT on fertilizers will also be reduced to zeroin order to limit the scale of the increases resulting from the increase in fertilizer prices, which is the result of the gas price increases.
In addition, for the next 4 months, lower VAT will apply – at the level of 5%. – for electricity and system heat. Importantly, the 2.0 shield is to solve the problem that the government did not anticipate in the 1.0 shield, i.e. the possibility of using gas at household prices for dwellings in communities and cooperatives. The total cost of all these solutions for the budget is to amount to PLN 15 billion.
Morawiecki accuses Russia and the EU
– Our actions are to help Poles and help reduce inflation in the long run – argued the prime minister. In his opinion, announced the so-called shield 2.0 will lower inflation by about 1-1.5 pp.
– Most Poles spend their sleepless nights on higher bills. It is known that this situation may take some time. It is known that inflation was caused by external factors, but we have to find an answer to them and bear the price, said the prime minister during a press conference, at the same time citing reports that indicate that 85 percent of the price will be paid. inflation corresponds to the prices of energy commodities and energy. He blamed Gazprom for the latter and criticized the European Union’s climate policy. – The EU climate and gas policy of Russia drains Poles’ pockets – accused Mateusz Morawiecki.
Anti-inflationary shield 1.0 and 2.0
The announcements of additional consumer support mechanisms were made shortly after the introduction of the first protective measures, which was the government’s reaction to information about inflation exceeding even the most far-reaching forecasts – in December it reached 8.6%, which is its highest level since November 2000.
As part of the first anti-inflationary shield, which entered into force in two stages – from December 20, 2021 and January 1, 2022, the excise tax on fuel was the first to be reduced, which translated into a drop in the price of a liter of petrol by approximately PLN 0.30. Since the beginning of January, taxes on energy and electricity have been reduced – the government wants to mitigate the price increase in this way, which in the case of electricity supplied to households by enterprises operating on the regulated market amounted to approx. 20 percent. As part of the reductions, the government decided to reduce VAT on natural gas and system heat from 23 percent. up to 8 percent
In addition, the 1.0 shield introduced the so-called cover allowance, which in the amount from PLN 400 to PLN 1,150 will go to approx. 6.8 million households. about
The total cost of the first shield for state finances is around PLN 10 billion.