Anti-Inflation Shield – Fuel & Food VAT Cuts

VAT cuts to fuel, food and fertiliser

The Polish Government have cut VAT on basic foods, fuel and fertiliser, as part of their ‘Anti-Inflation Shield 2.0’  (Tarczy Antyinflacyjnej 2.0), with effect from 1st February 2022.

The VAT cuts are, however, temporary and are expected to apply until 31st July, 2022.

The VAT reductions are:-

• VAT on fuel reduced from 23% to 8%,
• VAT on gas reduced from 8% to 0%,
• VAT on basic food products reduced to 0%,
• VAT on electricity reduced to 5%,
• VAT on heat reduced (up to) 5%,
• VAT on fertilisers reduced from 8% to 0%.

Detailed information is available on the website of the Chancellery of the Prime Minister.


Supermarkets increase prices ahead of VAT cuts
Researchers have found that Biedronka (and other supermarkets?) increased many food prices on the eve of the VAT cut, making many items more expensive after the VAT cut than before.

Warning that despite the VAT cuts, fuel prices may still rise

During the Tuesday press conference, Prime Minister Mateusz Morawiecki and the president of PKN Orlen, Daniel Obajtek, informed that the price of petrol dropped to an average of PLN 5.19, and diesel to PLN 5.24 per liter.

Fuel prices may soon increase by PLN 0.20 per liter – said Piotr Bujak, director of the economic analysis department of PKO BP. The reason for this situation is the uncertainty on the commodity markets.

Slovakian motorists queue for cheap Polish fuel.
Slovakian motorists are reported to be queueing at Polish petrol stations close to the Polish-Slovakian border, to benefit from the lower fuel prices.
Further information on the VAT cuts is available on these Government websites.

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