Anti-inflation package: government proposal to combat excessive price increases in Poland
Prime Minister Morawiecki presented at a press conference the government's proposals related to a package of solutions aimed at financial support for citizens in the fight against inflation. This Anti-inflation package assumes fuel prices reduction and VAT reduction on natural gas and electricity.
Due to the rising prices in the country, a program called the Anti-Inflation Package has been prepared, which provides for:
- Abolition of excise tax on electricity,
- Reduction of fuel prices,
- Reduction of VAT on natural gas to the level of 8%,
- Reduction of VAT on electricity to the level of 5%,
- Introduction of an inflation allowance for families (compensation for high VAT costs of electricity and basic food products in the form of allowance).
The Anti-inflation Package is only a temporary solution, depending on the time frame specified by the government. The table below indicates the duration of the package:
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Type of aid
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Duration
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Reduction of fuel prices (exemption from retail sales tax)
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From January 1 to May 31, 2022
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Abolition of excise tax on electricity
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From December 20 to May 20, 2022
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VAT reduction on natural gas (from 23% to 8%)
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From January to March 2022
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VAT reduction on electricity (from 23% to 5%)
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From January to March 2022
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The payment of the inflation allowance is also related to the fulfillment of the income criterion of households, divided according to the number of household members:
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Allowance on a yearly basis in PLN
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Household and income
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|
400
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A one-person household with income up to PLN 2,100 per month
|
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600
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A 2–3-person household with an income of up to 1,500 per person per month
|
|
850
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A 4–5-person household with an income up to PLN 1,500 per person per month
|
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1150
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A 6-person or more household with an income of up to PLN 1,500 per person per month
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