What will the VAT rate on food be next year? There is a difference of opinion about this between representatives of the Civic Platform and PSL.
The VAT rate on food must return to 5%. – says Andrzej Domański, MP of the Civic Platform, a potential candidate for Minister of Finance.
VAT on food
– 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 it is in my opinion (…) a 30% wage increase for teachers we must 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.
PSL MP: We will reach an agreement
MP Krzysztof Hetman, who in turn wants to take over the Ministry of Development and Technology, was asked to comment on this announcement, also on Radio Zet.
According to him, the zero rate should continue to exist. – As PSL we have said from the beginning that this must continue next year.
The host, Bogdan Rymanowski, recalled Domański’s statement. – How do you reach an agreement on this? – He wanted to know.
– Will we reach an agreement? – Hetman replied.
– Will it be 2.5 percent? – asked the journalist.
“We will reach an agreement,” the MP repeated.
– Will the VAT be zero or not – Rymanowski did not give up.
– PSL’s postulate is clear and transparent. Next year we want zero VAT on food, Hetman emphasized.
Rymanowski asked if the lawmaker had promised this to his constituents and listeners.
– I cannot promise it, because I have one vote in parliament out of almost 250 that we have in the parliamentary majority – the politician replied.
The journalist pointed out that without PSL’s 61 votes, there would be no decision in the coalition. – We will not govern in the same way as Mr Ziobro and Mr Morawiecki, who (…) blackmailed each other in the privacy of their office and went to their arbitrator on Nowogrodzka Street. We will do it in a different, civilized way, Hetman said.
Let’s not forget that the zero VAT rate on food was introduced on February 1, 2022 as part of the so-called anti-inflation shield.
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.
