Poland wants the European Union to allow it to reduce VAT on fuels to mitigate the impact of rising prices, Prime Minister Mateusz Morawiecki said on Wednesday, Reuters reports.
The Warsaw authorities have adopted a reduction in gas, gas and electricity taxes and the distribution of money to households in a program worth up to 10 billion zlotys ($2.54 billion).
The Polish government also wants zero VAT on food, but says it needs Brussels’ approval because of EU regulations. Finance Minister Tadeusz Koscinski told the public radio station that Poland wants to reduce VAT on fuels from 23% to 8%, according to Agerpres.
“We have asked the European Commission to reduce VAT on fuel, no one in Europe has done that. We are trying to come up with the right solution, it will certainly take a few more weeks,” Mateusz Morawiecki told a news conference.
According to the National Institute of Statistics, the inflation rate in Poland stood at 7.8% in November.
Individual customers of the Polish energy companies Energa, PGE, Enea and Tauron will have to pay about 24% more for energy next year, based on tariffs approved last week by the Polish Energy Regulatory Office.
The decision comes amid rising energy prices and the cost of acquiring CO2 emissions, the Polish Energy Regulatory Office said.
The new rates will take effect on January 1, 2022.