The finance minister has announced that the continuation of zero VAT on basic foodstuffs for the second half of this year will result in significant savings for Poles, amounting to over PLN 5 billion (EUR 1.12 billion).
In an official statement on Monday, Prime Minister Mateusz Morawiecki revealed that the zero VAT rate on essential food items would be extended until the end of 2023.
According to the Ministry of Finance’s Tuesday announcement, the zero VAT rate on food has been in effect since February 1, 2022. Prior to this, it was taxed at a rate of 5 percent.
In response to concerns over inflation and the crisis caused by Russia, the ministry emphasized the importance of protecting the financial well-being of Polish citizens.
Magdalena Rzeczkowska, quoted in the report, highlighted the significant savings achieved as a result of introducing the zero VAT rate on basic foodstuffs, indicating that in 2022 alone, Poles saved over PLN 8.5 billion (EUR 1.91 billion).
Rzeczkowska further projected that in the first half of 2023, savings would amount to approximately PLN 6 billion (EUR 1.35 billion). Furthermore, it is estimated that the second half of 2023 will bring additional savings exceeding PLN 5 billion (EUR 1.12 billion).
The zero VAT rate on food was initially introduced as part of the second Anti-Inflation Shield, which also included reduced VAT rates on fuels and electricity. While the tax cuts related to energy carriers expired at the end of 2022, the preferential tax rate on food has been extended until June 2023, ensuring continued financial relief for Polish citizens.