The government looks set to extend the zero percent VAT rate on food staples owing to the effects of high inflation, the government’s spokesperson said on April 25.
Piotr Mueller said that an extension would be “a most reasonable” decision.
“We are always observing the basket of, so to speak, basic products and, in this basket, food is a very important element,” he added.
At the moment, the zero VAT rate on food is in effect until June 30.
The government introduced the zero-rate in February 2022 in effort to help people cope with a soaring inflation rate that hit 18.4% in February this year.
At the end of March, Finance Minister Magdalena Rzeczkowska said that leaving the zero VAT rate on food until the end of this year was very likely and that a decision in the matter would likely come in April. (PAP/Business World Magazine)