Inflation shield tax cuts could be prolonged, official says

Piotr Nowak/PAP

Tax cuts included in a government programme designed to reduce the harm caused by rising inflation could be extended beyond the planned six months, the Polish government's spokesperson said on Wednesday.

Piotr Mueller said the inflation rate and its impact on prices will be decisive on whether to prolong the cuts, but stressed that the government was ready to do so "if inflation remained at a level that could endanger prices."

On Tuesday, Matuesz Morawiecki, Poland's prime minister, announced a series of measures that form the government’s second anti-inflation shield.

The shield includes lifting the VAT on food, fertilizer and gas, and reducing it to 5 and 8 percent on heating and fuel.

Mueller added that some of the shield-reduced taxes will have to be restored to their original level, but said the government would do so only if the inflation rate made it safe to do so.

The shield's first reading in the Sejm (lower house) is scheduled for Wednesday, the second on Thursday.