The Polish Ministry of Finance has declared its plan to discontinue the zero VAT rate on food items effective from April 1, 2024. This decision follows observations of declining inflation rates and a deceleration in the escalation of food prices. The standard VAT rate on food, which will be reinstated at 5%, had been waived since February 1, 2022, as a countermeasure against soaring inflation rates, which at the time stood at an annualized rate of 9.2%. Recent statistics from the Polish Central Statistical Office indicate a reduction in inflation to 3.9% year-on-year as of January 2024.
In a move by the transitional government led by Mateusz Morawiecki, Finance Minister Andrzej Kolorowniak extended the zero VAT rate until the end of March 2024. The upcoming adjustment is anticipated to primarily affect the cost of essential food commodities, including vegetables, some roots and tubers, as well as processed vegetables, fruits, and nuts.
The Ministry of Finance underscores that the zero VAT rate has considerably impacted state budget revenues.
Source: agroberichtenbuitenland.nl