"If inflation doesn't fall very significantly, it's not
excluded that in the fourth quarter of this year we will make a
decision to extend this relief for the next year," Morawiecki
told a news conference.
The decision will be made when inflation data for this year
and forecasts for 2024 will be available, the prime minister
said, adding that the measure costs around 10 billion zlotys
($2.41 billion) a year in lost budget income.
($1 = 4.1468 zlotys)
(Reporting by Marek Strzelecki
Editing by Peter Graff)
WARSAW, May 6 (Reuters) - Poland may extend zero VAT
rate on food staples into 2024 if inflation persists, Prime
Minister Mateusz Morawiecki said on Saturday.
Poland slashed taxes on a long list of products from fuel to
fertilizer to help consumers cope with surging inflation, but
had to return to higher taxes on gasoline this year in line with
European Commission rules. However, Brussels has allowed VAT on
food staples to be kept at zero.
While inflation slowed to 14.7% in April from 16.1% in
March, according to a flash estimate from the statistics office,
it remains a key political issue in the runup to a general
election this year.
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