Poland to cut taxes on fuel, gas and power during high inflation

In Warsaw, the Polish government has announced plans to cut taxes on fuel, gas and power for the coming winter as the high inflation makes households worry about chances to pay energy bills, Polish public broadcaster Polskie Radio and PAP news agency report.

In a press conference on Thursday, November 25, Polish prime minister Mateusz Morawiecki stated that the government sought to «provide help through the winter months when we expect higher inflation.» with tax, benefit and government austerity measures worth a total of PLN 10 billion (EUR 2.1 billion).

One measure would be to cut lower excise tax on fuel and make fuels at the pump additionally exempt from retail sales tax. From January to March, gas users would will pay 8 percent value-added tax (VAT) instead of the current 23-percent rate, Morawiecki said.

As to power, the VAT on electricity would be set to be lowered from 23 percent to 5 percent between January and March 2022, the head of government. Polish households will also see excise tax cut to zero, but other electricity users will pay a reduced excise duty rate, the government stated, Polskie Radio and PAP news agency report.


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