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Inflation 2023. Zero VAT on food extended until the end of 2023? There is information from the Ministry of Finance

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The zero VAT rate on food is to be extended until the end of 2023. This is the conclusion of the prospectus of the issue program of the Ministry of Finance of March 17, 2023, which was written by the Polish Press Agency. The zero VAT rate was to apply until the end of June this year.

From the beginning of February 2022, the second edition of the so-called anti-inflation shield. It included, among others, zero VAT rates on certain food products, e.g. fruit, vegetables, meat, dairy products or cereal products. At the beginning of December, the Minister of Finance, Magdalena Rzeczkowska, signed a regulation extending the zero VAT rate on food until the end of June 2023.

The prospectus of the issue program of the Ministry of Finance of March 17, 2023 shows that the solution will last longer.

Zero VAT for longer?

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“Foot inflation has been limited to some extent thanks to the anti-inflation measures introduced by the government. In response to rising inflation, a set of measures was introduced to mitigate the negative impact of rising prices on households (the so-called anti-inflation shields 1.0 and 2.0). They were based on two instruments: lowering taxes, including value added tax (VAT), excise duty and some other taxes on energy, fuel and foodstuffs, and direct, one-off aid from the state budget for households with lower incomes. stated in the prospectus.

“Part of the measures implemented under the anti-inflation shields expired at the end of 2022, but the zero VAT rate on basic food products has been extended until the end of 2023” – added.

Government representatives have already indicated that this solution may be extended to 2023. In response to PAP’s questions, the Ministry of Finance informed that it was constantly monitoring the situation. “If necessary, decisions will be made to further extend the zero VAT rate on food,” wrote the Ministry of Finance.

Government spokesman Piotr Mueller announced during a Monday press conference that the government should decide in April on a possible extension of the zero VAT rate on food.

– In the area of ​​anti-inflation shields, we make decisions practically 2-3 months in advance when it comes to issues related to the rate, so the decisions you are talking about will probably be made in April, so that there is clarity about tax rates for the next six months – said Mueller when asked about the prospects of extending the “zero” VAT rate on food for the second half of the year.

Main photo source: Shutterstock

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