Parliament rejects Senate amendments to VAT reduction bill

The Sejm voted on Wednesday on seven Senate amendments to the bill, which cuts VAT to zero on food, fertilizers and gas while reducing the rate to 5 percent on heating and 8 percent on fuel. Tomasz Gzell/PAP

The Sejm, the lower house of parliament, on Wednesday rejected amendments made by the upper house to a bill temporarily reducing VAT on food, fertilizers, gas and other items.

The bill, which forms part of the government's 'Anti-Inflation Shield 2.0' will now go to the president for signing.

The Sejm voted on Wednesday on seven Senate amendments to the bill, which cuts VAT to zero on food, fertilizers and gas while reducing the rate to 5 percent on heating and 8 percent on fuel. The lower rates are to apply from February 1 to July 31, 2022. All the amendments were rejected.

The Senate's proposed changes increased the catalogue of goods subject to a VAT reduction to 8 percent, to include coal and coke, heating oil and diesel used for heating, other heating fuels and Liquefied Petroleum Gas which is used for heating.