Poland’s recent decision to discontinue a regulation offering a zero VAT rate on essential food items has sparked controversy and concern among consumers and economists alike. As of Monday, the VAT rate will return to 5 percent, imposing potential financial burdens on households already facing economic challenges.
The change will encompass staples such as meats, dairy, fruits, and vegetables, as well as infant formula and certain medical foods. This adjustment is anticipated to result in increased prices across the board, impacting consumers directly.
The move could widen social inequalities and deepen the financial divide, as higher prices for basic necessities disproportionately affect lower-income households. Moreover, the anticipated inflationary impact further compounds the economic burden on the populace, threatening to erode purchasing power and living standards.