Factsheet for measure
PL-2022-4/2120
–
Updated
– measures in Poland
Counter-inflation Shield
Tarcza Antyinflacyjna
Background information
In 2021 Poland witnessed a leap in inflation rate unseen in the 21st century. The annual rate (December-to-December) is estimated to be 8.6%, according to the national statistics (GUS). The government, seeking policy solutions cushioning the social and economic impact of drastically increasing prices (which it sees as at least partially caused by COVID-19 and its aftermath) came up with a new set on anti-crisis measures under the banner of the Government Anti-Crisis Shield in December.
Content of measure
In particular, the following measures are included in the Counter-inflation Shield:
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Allowance for households (income thresholds apply) of up to PLN 1,150 per year, the allowance is to be paid in two installments
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Abolition of excise duty on electricity
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Reduction of the VAT rate on electricity from 23% to 5%
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Reduction of the VAT rate on natural gas from 23% to 8%
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Lowering the price of fuel by reducing excise duty (in real numbers)
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Reduction of VAT on so-called system-heating (delivered via radiators) from 23% to 8%
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Introduction a 0% tax rate on retail sales of fuel
Updates
The following updates to this measure have been made after it came into effect.
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01 January 2023
|
From 1 January 2023, most of the provisions of the inflation protection mechanism are no longer in force. VAT rates have been increased on
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Natural gas - from 0% to 23%.
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Electricity - from 5% to 23
-
So-called system-heating (delivered via radiators) from 5% to 23
-
Retail sales of fuel from 8% to 23%.
However, according to the decree of the Minister of Finance of 2 December 2022, the zero rate of VAT on basic food products will be maintained until 30 June 2023.
At the same time, low-income households will be able to claim a
refund of VAT paid on gas purchases
in 2023.
|
|
12 October 2022
|
All the measures within the Counter-inflation shield have been prolonged until the 31 December 2022. No decision on continuing the measures in 2023 has been taken yet.
|
|
01 February 2022
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As of 1 February, the zero rate of VAT on basic food products became effective.
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Use of measure
Not data to report now.
Target groups
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Workers
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Businesses
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Citizens
|
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Applies to all workers
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Applies to all businesses
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Applies to all citizens
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Actors and funding
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Actors
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Funding
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National government
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National funds
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
|
|
Role
|
Unknown
|
Unknown
|
|
Form
|
Not applicable
|
Not applicable
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
Unknown
-
Main level of involvement: N/A
Involvement
Unknown.
Views and reactions
Unknown.
Sources
-
14 December 2021: Anti-inflation shield and tax cuts - the government is countering the effects of inflation
(www.gov.pl)
-
14 July 2022: Support for borrowers and extension of anti-inflation shields signed by the President
(www.gov.pl)
-
11 December 2023: Zerowy VAT na żywność w 2024 roku - skutki dla budżetu
(ksiegowosc.infor.pl)
