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Government To Cut VAT on Food, Gas and Electricity

POLAND
  • PM Morawiecki mentioned in a news conference that Poland is set to lower VAT on fuels to 8% (from current 23%) and to cut VAT on food staples, gas and fertilizers to 0% for 6 months starting February 1.
  • The tax cuts will cost budget 15 to 20bn PLN.
  • Morawiecki also added that Polish government is trying to strengthen the zloty to curb inflationary pressures.
  • The strong depreciation of the PLN in 2021 amid uncertainty over the policy outlook and the on-going tensions with the EU had weighed on the zloty and therefore supported inflation expectations.

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