VAT on gas is likely to increase to 23 percent from January. The government explains this with the position of the European Commission. Brussels denies it, because it allows member states to lower the rate even to 5 percent, Rzeczpospolita informs on Thursday.
“We must restore VAT on gas, because this is the requirement of Brussels,” justify the members of the government Mateusz Morawiecki 23% return VAT on gas from the new year.
“Although the government explains that this is dictated by the position of the European Commission, the reality is slightly different: Brussels allows member states to lower the rate to as much as 5 percent. However, the Polish government will not do it. Why? It may be about an increase in budget revenues in election,” writes Rzeczpospolita.
Member States may decide to reduce the rates
As the newspaper points out, the Commission admits that zero VAT on gas, which is currently applied in Poland, can no longer apply. But its amount may be lower than that planned by the Polish government. “As part of the available set of tools – on the application of reduced VAT rates to energy products – Member States may decide to reduce rates, as long as they respect the minimum 5% threshold set in the VAT directive” – informs “Rz” the press office of the Commission.
Support from the Ministry of Finance
Quoted by the newspaper Ministry of Finance informs that it monitors the current situation on the gas market and introduces support outside tax instruments.
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