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Tuesday, December 7, 2021

Cover additive. Who will be able to use it? How much will it be?

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In 2022, some households are to receive a cover allowance. There will be an income limit to qualify for a surcharge. The allowance will be from 400 to 1,150 PLN per year. We explain who will be able to use it.

During the Thursday press conference, Prime Minister Mateusz Morawiecki announced “direct support for families through the support allowance”. – We are introducing (…) an applicable mechanism in the form of a protective and compensatory supplement, which takes into account the reduction of VAT, if it were to zero, on food products, of course, of the first need. But we are introducing it through subsidies for people according to income criteria which are strictly defined – he explained.

As the head of government said, the cover allowance will have a value from PLN 400 to “even over PLN 1000”. The amount of support will depend on the number of people in a given household.

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Cover additive. How much will it be?

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The graphics presented by the Chancellery of the Prime Minister show that an annual surcharge of PLN 400 will be available for a single household with a monthly income of up to PLN 2,100.

In the case of 2-3-person farms, the allowance will be PLN 850 per year, and for 6-person farms and more – PLN 1150. Importantly, for those households larger than 1 person, the monthly income per person will not exceed PLN 1,500.

According to government estimates, approximately 5.2 million households are eligible for the shielding allowance. The money is to be paid out in 2022 in two installments.

Prime Minister Morawiecki also said on Thursday that the government was considering introducing zero VAT on food products. – We were considering reducing VAT to zero on food products and unfortunately, the European Commission has different rules, it does not agree to this type of action. If there was consent on the part of the European Commission, it is our commitment to implement, for the entire first half of next year, a zero VAT rate on food products. But there is no such consent so far, said the head of government.

Main photo source: Shutterstock



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