Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Poland announces tax cuts to soften inflation blow

Economic IndicatorsNov 25, 2021 07:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: People visit a shopping centre, which was reopened after the coronavirus disease (COVID-19) restrictions were eased in Gdansk, Poland, February 1, 2021. Bartosz Banka/Agencja Gazeta via REUTERS

WARSAW (Reuters) -Poland will cut taxes on petrol, gas and electricity and provide cash payments to households in a programme worth up to 10 billion zlotys ($2.40 billion) designed to help people deal with high inflation, the prime minister said on Thursday.

Inflation in Poland, which has the largest economy of emerging European countries, has hit levels not seen in two decades. This has strained household budgets and caused concern for a government that touts its record of boosting ordinary citizens' spending power through generous social benefits and minimum wage increases.

"The Polish government is acting to... soften, buffer against this growth in inflation," Mateusz Morawiecki told a news conference.

Tax on petrol will be lowered to the minimum allowed by the European Union for five months starting on Dec. 20, he said.

Value-added tax (VAT) on gas will be cut to 8% from 23% from January to March. VAT on electricity in the first three months of 2022 will fall to 5% from 23%. There will also be no excise duty on electricity for households.

Additionally, households will receive financial support in the form of means-tested payments of 400 to 1,150 zlotys, which will be made in two installments in 2022.

Rafal Benecki, chief economist at ING in Poland, said the programme would cut CPI temporarily and mean its peak was lower, but the payments to households would combine with already announced tax cuts and an increase in the minimum wage to fuel consumer demand.

"I think the impact of this is lower inflation at the beginning of the year and higher inflation at the end of the year," he said.

Central and Eastern European countries have seen some of the highest inflation on the continent, as tight labour markets and a strong rebound from the COVID-19 pandemic combine with global factors like rising energy prices and supply chain disruptions.

According to a CBOS opinion poll published on Tuesday, public criticism of the government's economic policies is deepening, with 57% of respondents saying they do not see a chance that the economic situation will improve.

($1 = 4.1589 zlotys)

Poland announces tax cuts to soften inflation blow
 

Related Articles

Euro zone bond yields drop as COVID variant sows fear
Euro zone bond yields drop as COVID variant sows fear By Reuters - Nov 26, 2021

By Abhinav Ramnarayan and Dhara Ranasinghe LONDON (Reuters) -Euro zone government bond yields dropped sharply across the board on Friday as investors reacted to a newly identified...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Jan Chojnacki
Jan Chojnacki Nov 25, 2021 7:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i am wondering how much will petrol cost, right now it is more than 6 PLN per liter of gasoline
Jack Bquick
Jack Bquick Nov 25, 2021 6:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Smart people. Now their economy will grow faster!
Ma Gal
Ma Gal Nov 25, 2021 6:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
For 3 months, nothing to celebrate yet...
hans gaaikema
hans gaaikema Nov 25, 2021 6:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so printing more money to fight inflation... brilliant.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email