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Poland to cut taxes to soften inflation blow, says PM -Breaking

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© Reuters. FILE PHOTO – People walk through a shopping center that was reopened in February 2021 after restrictions on coronavirus (COVID-19), were lifted in Gdansk. Bartosz Banka/Agencja Gazeta via REUTERS

WARSAW (Reuters – Poland plans to cut petrol taxes, electricity, and gasoline prices and to provide cash payments for households as part of a 10-billion zloty ($2.40 billion), which is designed to aid Poles in dealing with high inflation.

The inflation rate in Europe’s biggest economy is at an all-time high. It has caused financial strain for households and headaches to a government which takes pride in its ability to increase the spending power and provide generous social benefits as well as an increase in minimum wage.

Mateusz Morawiecki said that “the Polish government is acting… to soften, buffer this growth in inflation.”

He stated that the European Union will reduce the tax on petrol to the lowest level for five months, starting Dec. 20.

From January to March, the value-added tax on gasoline will drop to 8% (from 23% in February) The VAT rate for electricity will drop to 5% in 2022, from 23%.

Additional financial assistance will also be provided to households in the form of income-based payments, which will be paid in two installments by 2022.

Europe’s governments and others are experiencing similar inflation pressures as a result of higher energy prices around the world and disruptions in supply chains caused by the global coronavirus pandemic, and the lockdowns that it prompted.

($1 = 4.1589 zlotys)

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