VAT cuts cost Poland EUR 7.9 billion in 2023

A reduction in VAT introduced in 2022 to counter the rapid increase in prices cost the Polish budget PLN 37 billion (EUR 7.9 billion), a deputy finance minister has said.

Last year, Poland lowered the VAT rate on basic foodstuffs, fertilisers and fuels. The government also cut the excise tax on fuels and energy.

"In 2022, we launched an anti-inflation shield that lowered the VAT to minimum rates or even below," Artur Sobon said at a press conference on Tuesday. "It cost the budget PLN 37 billion (EUR 7.9 billion)."

In the case of excise tax cuts, "the cost for the budget was lower and amounted to PLN 3.2 billion (EUR 0.68 billion)," Sobon said.