The VAT rate on food must return to 5%. – says Andrzej Domański, MP of the Civic Platform, advisor to Donald Tusk.
– I believe that VAT should be reduced to 5%. The Polish tax system is largely based on VAT, and as a Polish state – if we want to be able to finance the necessary investments, and such an investment in my opinion is (…) a 30% increase for teachers, we need to have some sources of income and the 5% VAT on food is of course one of those sources, Domański said on Radio Zet.
The PO MP stated that this was his position and that the decision on this would be made by the new government. He also pointed out that the draft budget for 2024 does not include a zero VAT rate on food.
Zero VAT rate. Will the new government change PiS’s decision?
Prime Minister Mateusz Morawiecki announced last week that the government will present regulations regarding the maintenance of the zero VAT rate on food at least until June 2024.
Since February 2022, there has been no VAT on food. According to estimates by the Ministry of Finance, maintaining this rate will cost the state budget about PLN 11 billion this year.
Tusk before the elections: there will be no anti-inflation shield, VAT on food will be restored
Civic Platform chairman Donald Tusk said at the end of August that there would be no anti-inflation shield in next year’s budget and that VAT on food would be reinstated.
– Nowadays you don’t get (this) information in their government media. I’ve got it. That next year’s budget will no longer contain a shield to protect against at least some of the effects of inflation. That they will restore VAT on food, Tusk said during a meeting with voters in Gdańsk.
– Today, Kaczyński and Morawiecki can say the same thing: “the government will feed itself.” The government benefits enormously from this inflation, the head of the Platform argued before the elections.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
