Poland requests EC permission to lower VAT on fuels

Marcin Bielecki/PAP

The Polish government has written to the European Commission asking permission to lower the VAT on fuels, the prime minister announced on Tuesday.

The government has said a cut to the price of fuel is one of the measures it wants to introduce to soften the blow Poland’s high inflation rate is having on the public.

"Today we have sent a further letter to the European Union, to the European Commission, with a request for acceptance of a VAT reduction on fuels," Mateusz Morawiecki told a press conference.

The Sejm, the lower house of parliament, recently amended the law on excise duties. The amendment lays out a cut to the minimum EU rules allow on the excise rates on fuels from December 20-31 this year and from January 1 to May 31, 2022.

The justification for the legal amendment explains that as a result of the December cut, diesel will be cheaper by PLN 0.8 (EUR 0.017) per litre, and after taking VAT into account PLN 0.10 (EUR 0.022) cheaper, while from January 1 to May 31 it will be PLN 0.05 (EUR 0.011) per litre cheaper (PLN 0.6 (EUR 0.013) with VAT).

Petrol will be cheaper in December by PLN 0.14 (EUR 0.03) per litre (by PLN 0.17 (EUR 0.037) including VAT) and from January, PLN 0.11 (EUR 0.024) cheaper per litre (PLN 0.18 (EUR 0.039) with VAT).