Gov't launches anti-inflation shield

"Today we have begun introducing the provisions of the anti-inflation shield," the prime minister said. "It is to protect Polish families and household budgets from rising prices." Radek Pietruszka/PAP

The Polish prime minister on Tuesday launched a PLN 10 billion (EUR 2.1 billion) financial shield designed to "protect" the country's economy and households from rising inflation.

Mateusz Morawiecki said the shield will introduce excise cuts on fuel and electricity, VAT cuts on heating and an inflation aid scheme for households hit by rising prices.

He also said that a bill lowering the excise duty on fuel and power was passed by the government earlier on Tuesday.

Morawiecki said the household aid will range from PLN 400 (EUR 85.4) to PLN 1,100 (EUR 235), and will be paid out in two tranches. He added that the government decided to extend the scheme to cover more affected households.

Also planned are VAT cuts, ranging from 23 to 8 percent, on heating gas and electricity, and the annulment of excise duty on electricity, Morawiecki said.

"Today we have begun introducing the provisions of the anti-inflation shield," the prime minister said. "It is to protect Polish families and household budgets from rising prices."