Anti-Inflation Shield 2023 The European Commission has comments on VAT rates

The results of the “DGP” show that the European Commission has conveyed its doubts to Warsaw regarding the solutions presented in Anti-inflation shield. It is about reduced VAT rates for gas, motor fuel and fertilizers. “Although it appears standard procedure in the event of a breach of the directive (low prices are not allowed as we agreed), our officials interpret this as a sign that Brussels – although it has turned a blind eye so far – will not agree to maintain this status.” – He writes notes.

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The magazine notes that, contrary to appearances European Commission actions may be beneficial to the Polish government. If a decision is made to withdraw from the shield, the ruling camp will be able to say that this is Brussels’ fault. “It is no secret that solutions to counteracting price hikes are burdening the Polish budget – only this year it costs about 30.6 billion PLN, and it may be even higher next year” – points out the “DGP”.

One source tells the daily that Poland has tried to lower value-added tax rates on fuel, gas and fertilizer, but the European Commission’s response has been negative. According to another press source, Polish officials during the ECOFIN meetings, where the finance ministers are meeting, are under pressure for our country to resign from the reduced interest rates.

The European Commission in correspondence with the Polish government It indicates that Poland is currently violating EU law on three goods. We have 8% of the fuel. Value-added tax, it should be 23 percent. The next product is fertilizer, of which we have 0%. Instead of the previous 8 percent. The third commodity is natural gas – also without VAT (previously 23 percent) – writes “DGP”.

Thus, the commission may have reason to initiate infringement proceedings.

There are three sessions of the House of Representatives by the end of the year: in mid-November, in early November and December, and in mid-December.