We are extending 0% VAT on food
29.11.2022
We are extending the reduced VAT rate on food products. In the fight against inflation and the crisis caused by Russia, the most important thing for us is to protect the Polish people’s pockets. The zero VAT rate on food will continue to apply from 1 January 2023 to the middle of the year. So far, thanks to this solution, over PLN 7.6 billion has remained in the Polish people’s pockets. Tax cuts are just one of many protective measures being taken by the Government.
Our pro-social response to the crisis
Turmoil in global markets, broken supply chains and, above all, high energy prices, caused by Russian energy blackmail, have all increased inflation around the world – especially in Europe.
We have taken concrete actions to protect the Polish people’s pockets. We introduced the Anti-Inflation Shield at the beginning of 2022. Amongst other things, we have also reduced VAT on basic food products.
Today, we are still under external pressure from the energy crisis, which is why we have decided to extend the zero VAT on food until the first half of 2023. The 0% rate - as part of the Government’s Anti-Inflation Shield - covers basic food products, such as fruits, vegetables, meat, dairy products or cereal products. This is a great help to the household budgets of our citizens.
”The ongoing global crisis, which is a great challenge, must be combatted by pro-social methods. Tha is what we believe. This is our credo: social policy must be maintained, and protective measures must protect those who are less able to fight inflation” said Prime Minister Mateusz Morawiecki.
A total of PLN 7.6 billion remains in Polish men and women’s pockets
Polish diplomacy at the EU forum defended the postulate of applying lower VAT rates on food. Thanks to our efforts, the Member States of the European Union can use this solution to relieve the pockets of their citizens.
In Poland, thanks to the reduction of the VAT rate on food from 5% to 0% under the Government’s Anti-Inflation Shield, a total of over PLN 7.6 billion has remained in the Polish people’s pockets (from February 1, 2022).
Maintaining a zero VAT rate on food in 2023 will also have a real impact on the average annual inflation rate.
"Last year we put the brakes on these rapidly rising prices. I have seen many of the analyses that showed this has helped us lower the maximum peak of inflation by 3 to 4 percentage points. In other words, if it is between 17-18% today, it would have been 21-22%.
We are protecting families – comprehensive solutions for Polish men and women
The Government's Anti-Inflation Shield is only one of several elements in the fight against the financial crisis and inflation. We are responding to a number of different situations in which Polish people find themselves in the face of a global crisis.
Our activities are currently focused on the price of energy and its carriers, because it is a kind of mother of all costs. High energy prices translate into production costs and service costs, resulting in higher prices. That is why we have introduced:
- The Anti-Inflation Shield – tax cuts on many products, including energy;
- The Energy Shield – allowances and compensation for the purchase of energy raw materials;
- Tarczę Solidarnościową – lowering or freezing electricity prices.
For further details about protective measures taken by the Government, see chronimyrodziny.gov.pl.