The dreams of the opponents of high taxes come true. It is true that only for six months and due to the rising prices of other goods and services, but always.
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The first shield took about PLN 10 billion of revenues from the budget, so a reduction in tax on food at a cost of PLN 6-7 billion makes it the most important item in the second stage of the cuts. The tax reset applies to this those products that today are subject to the 5 percent rate. The solution is to apply from February 1 to the end of July. Let’s see which goods are concerned.
The list below comes from the annex to the VAT Act, which entered into force from January 2021. This list already included the amended VAT matrix, which was in force from July 2020, i.e. the 5% rate. included tropical fruit, long-life bakery products, biscuits, soups, broths and homogenized foods, mustards and certain processed spices, and baby food. From food On the other hand, we will not see lobsters, octopus, crabs, lobsters, shrimps, oysters, clams, snails and caviar, which were covered by the 23% rate., but also ice used for food and cooling purposes.
As you can see, it will be lowered, among others tax on non-alcoholic beverages, including sweetened ones. Let us just remind you that from January 2021 a special tax was introduced on them, which is commonly called the sugar tax. This raised the price of sweetened drinks by a quarter.
As part of the first anti-inflationary shield, which entered into force in two stages – from December 20, 2021 and January 1, 2022, the first excise duty on fuelwhich translated into a drop in the price of a liter of gasoline by approx. PLN 0.30. They were lowered in turn from the beginning of January taxes on energy and electricity – 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 cuts, the government decided on decrease in VAT on natural gas and system heat from 23 percent. up to 8 percent In the second edition of the anti-inflationary shield, VAT on heat will be reduced to 5%.
In addition, the 1.0 shield introduced the so-called a cover allowance, in the amount from PLN 400 to PLN 1,150, will go to approx. 6.8 million households.