Poles will soon benefit from tax cuts and see lower fuel prices as part of the so-called “anti-inflation shield”, the government said on Tuesday.

“Today we have started to implement the assumptions regarding the anti-inflation shield. It is supposed to protect Polish families and Polish household budgets against price increases, ”Prime Minister Mateusz Morawiecki said.

Among the solutions to be introduced are tax cuts. The government is preparing to reduce the VAT on heating from 23% to 8% and will extend beneficiaries of the “shield allowance” to seven million households, Morawiecki said.

“If in the second quarter of next year inflation does not show significant downward trends, we will act more, we will support Polish citizens,” he added.

In the case of fuels, he pointed out that in addition to reducing excise duties and lowering emission rights to zero, the retail sales tax will also be changed.

“The fuels will not be included in the business tax, which should reduce the price of fuel by around ten cents. With other measures, this could lead to a reduction in fuel prices per liter from 20 to 25 groszy, and optimists even say of 30 groszy, ”he added.

“We are putting in place a tax shield resulting from price increases from various manufacturers. It will be paid in two installments and it will amount to amounts ranging from PLN 400 to PLN 1,100, depending on the size of the household, the size of the family, ”Morawiecki said.

(Martyna Kompała | EURACTIV.pl)