Zero VAT on food to remain in H1 2023 says PM

Paweł Supernak/PAP

Mateusz Morawiecki, the prime minister, has said that Poland will keep a zero VAT rate on food in the first half of 2023.

The Polish government introduced a shield, which brought in a number of VAT cuts on food and fuel, at the end of 2021 to combat rising inflation but in its present form has failed to get the approval of the European Union.

Under the shield, VAT on food products was cut to zero percent from the standard 5-percent rate, while VAT on fuels went down to 8 percent from the standard level of 23 percent.

"Let me say today that the shield will continue in its current form, at least throughout the first six months of next year," Morawiecki told reporters on Tuesday.

"This means PLN 8 billion (around EUR 1. billion) or above PLN 8 billion. And this is the cost which will have to be borne by the state budget," the prime minister said.