Poland’s PiS party submitted a bill to eliminate VAT on food items, aiming for a parliamentary vote as early as Tuesday, according to party officials.
PiS Bill Seeks Zero VAT on Food
PiS has proposed legislation to reduce the VAT on food from 5% to 0% until the end of 2026. The party will request an extraordinary session of the Sejm (Polish Parliament) on Tuesday to discuss the bill.
Przemysław Czarnek, a PiS deputy leader, stated the move is a response to high fuel and electricity prices driving up food costs.
Potential Financial Impact
Czarnek estimates the VAT reduction would leave over 3 billion złoty (Polish currency) in the pockets of Polish consumers, based on calculations using current government budgetary assumptions.
Fuel Price Regulations Take Effect
Regulations from the government’s “Lower Fuel Prices” package came into effect on Sunday, including a law modifying regulations regarding oil reserves. This introduces a mechanism for calculating the maximum fuel price at stations.
The price will be determined by a formula including the average wholesale fuel price, excise duty, fuel fee, a sales margin of 0.30 zł per liter, and VAT.
First Fuel Price Announcement Expected
The first announcement from the Minister of Energy regarding the maximum fuel prices is expected around noon on Monday.
