The Polish government is very likely to reduce the VAT rate on staple foods to zero for at least six months, starting from February, in the face of rapidly rising inflation in the country, according to Prime Minister Mateusz Morawiecki.

Poland has already asked the European Commission for approval to cut VAT on foodstuffs to zero as Polish society has been hit hard by rising inflation, which exceeded forecasts and reached 7.8 percent in November. Economic experts now expect it to continue growing for the next few months.

Currently, the implementation of zero-percent VAT rates on food in the EU is impossible, but as a result of new ministerial arrangements in Brussels, they will probably be allowed under the new tariff directive in the first half of 2022.

“We will apply a shield package or shield add-ons regardless of the European Commission’s answer,” PM Morawiecki said.

The government has already introduced an ‘anti-inflation package’, a bundle of measures including tax cuts and subsidies to low earners, to protect society from the impact of inflation.

The anti-inflation package includes solutions such as cuts in motor fuel prices, gas price reductions (January-March), zero percent electricity excise duties for households, reduction of electricity prices (January-March), as well as lowering the costs of electricity and basic food products through the “package” supplement (from EUR 86.25 to EUR 248 per year, depending on the household income).