Gov't to distribute extra tax gains, FinMin says
The Polish government will give to society whatever gains the state budget gets owing to rising inflation, the finance minister has said.
Earlier on Thursday, the Polish government announced it would introduce a package of tax cuts, including a reduction in excise tax on fuels and electricity, to mitigate the effects of inflation driven up by high gas and electricity costs.
Tadeusz Kościński told public broadcaster Polish Radio One on Thursday that the so-called anti-inflation shield will cost the Polish budget some PLN 10 billion (EUR 2.14 billion), whereas the government has gained about PLN 8-9 billion (EUR 1.71 billion-1.93 billion) from higher prices in the economy.
"So we're giving back to society whatever the budget has gained from increased inflation," Kościński said.
"How much each of us will save will depend on the bills we pay," Kościński said. "But I can remind you that we're lowering the VAT tax on gas to 8 percent from 23 percent... while the electricity price cut will be bigger, as we're reducing VAT to 5 percent from 23 percent."
The finance minister also said that fuel prices at petrol stations would drop by a few percent.
To finance the new programme, the government will freeze employment in public administration and seek cost savings, according to the minister.
Poland's inflation has been rising throughout the year and has recently approached 7 percent, far above the central bank's official target of 2.5 percent. Energy prices have been the biggest contributor to the recent price increases.