The government cuts VAT on fuel
20:52
From February 1, at least for six months, the government will lower VAT on fuel to 8 percent from 23 percent, which is to cause a drop in prices at stations by PLN 0.60 to 0.70 per liter, and in the case of LPG gas by PLN 0.40, Prime Minister Mateusz Morawiecki announced last week in an interview with Interia.
It will cost the state budget over PLN 3 billion. This is another move of the government after cutting the excise tax in December, which translated into a drop in prices by PLN 0.20-30.
These are also further actions of the government aimed at reducing the costs of households in times of high inflation (in December it was 8.6 percent according to the GUS quick reading, while in 2021 it exceeded 5 percent on the annual average).
The European Union has not yet expressed an opinion on this matter.
"Even if such consent is needed, I want to fight inflation in real terms and I do not want to say with irony, like Donald Tusk, that the government can actually do nothing because there is no magic button with the ‘low prices’ inscription on it. We are not sitting with folded arms, the government is doing everything to limit the effects of inflation on people," PM added.
