Zero VAT on food. What next with the reduction? Media: Brussels shouldn’t cause us any problems

for food, which is part of the Anti-Inflation Shield expiring in January, will probably be extended. Politicians from the coalition parties that may form a government have been announcing for several weeks that they are considering extending the program. Ryszard Petru, an MP from Poland 2050, said that “perhaps” the new government will extend the Anti-Inflation Shield. .pl describes, however, that politicians are mainly prevented from extending the shield by fear of the reaction

Will Brussels allow Poland to abolish VAT?

– Zero VAT should be maintained. The only question is what the European Union will say – one politician worried anonymously in an interview with money.pl. The portal found out with EU officials that the Commission recommended that Poland “pursue a prudent fiscal situation aimed at achieving a prudent fiscal situation in the medium term”, but the final decision “on the shape of the national fiscal policy, including tax policy, taking into account these recommendations, rests with each Member State”. “. This means that Brussels should not cause us any problems if the current regulations were extended.

Let us remind you that VAT on food will increase automatically from January. The government did not decide to extend it. However, when submitting his resignation, the Prime Minister declared that “the government, which is still operating, will want to use the laws it has already adopted” and mentioned, among others: a shield law extending zero VAT on food until at least half of 2024.

Inflation will depend on the amount of VAT

This matter is really important. Restoring VAT to 5%. may increase the prices of most food products. Janusz Piechociński reports that in such a case, the grocery basket will be 8.3% more expensive in January. than a year earlier. “Almost half of this increase is due to the removal of the tax relief,” he adds. In turn, the president of the National Bank of Poland announced that due to the elections it is currently impossible to predict how the decisions of the new government will affect inflation in the following quarters. He spoke, among others: precisely about the VAT rate. – What it will spread over time and what it won’t. What announcements or programs he will want to implement and which ones he will give up. First of all, we do not know about such basic issues for Poles – how much will we pay for food? Will zero VAT be maintained or not? This is a matter of decision, Glapiński said.