Polish zero VAT on food faces renewed political pressure as MPs debate extension

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The parliamentary majority is facing growing criticism for not acting on zero VAT for essential foods. A prominent voice from the PiS ranks, Waldemar Buda, a former Minister of Development and Technology, urged the government to move from talk to action. He emphasized that a ready-to-implement plan exists and that strong, decisive steps are needed to shield Polish households from price pressures as inflation remains a concern.

“We have a project ready and we will push hard.”

Zero VAT on food was introduced on February 1, 2022 as part of an inflation-control package designed to soften the impact of rising prices in the wake of rising global pressures and the subsequent conflict in Ukraine. The policy was set to last through the current year, with the expectation that it would help maintain affordability for families when budgets are tight.

MP Buda highlighted a perceived lack of urgency among the governing majority. He warned that without timely action, the cost of basic groceries could surge from January, potentially by a significant margin. He noted that any tax relief, if delayed or withdrawn, could lead to a price uptick that outpaces the relief itself, making everyday essentials less affordable for many Poles.

According to Buda, there is a PiS-backed proposal in the Sejm to extend the zero-rate policy. He stated that the party has a ready regulatory or legislative option and intends to strongly urge the opposition to implement measures that safeguard consumers. He described the situation as a public-interest imperative and called for timely action to preserve household purchasing power.

Prime Minister: ‘Unfortunately, Poland will pay for their approach at the cash register’

On November 20, PiS MPs submitted a draft amendment to the Goods and Services Tax Law proposing an extension of zero VAT on food from January 1 to the end of June 2024. The Prime Minister, Mateusz Morawiecki, shared a video about this proposal on social media, underscoring the administration’s stance that the policy should continue beyond the current horizon.

In the PM’s view, the bill is ready in substance, but the new parliamentary majority has raised questions about funding because the budget framework is being scrutinized. He argued that funds exist and are properly accounted for within the current fiscal plan, asserting that the budget remains in good health and that past practice has not drawn complaints when zero VAT on food was introduced through regulatory means.

Morawiecki also reflected on political rhetoric around the policy, noting that opponents sometimes offer excuses rather than solutions. He invoked a well-known proverb about a ballerina to illustrate how some critics might gracefully dodge the core issue while attempting to distract the public from the essential need to keep food prices manageable. The prime minister’s remarks also referenced remarks attributed to KO MP Andrzej Domański, whose reported stance during a Radio Zet interview suggested a reduction of VAT back to 5 percent. The interview cited by media outlets is presented here as a part of the broader political discourse surrounding tax policy and consumer costs.

Morawiecki concluded by reiterating that opponents have shown reluctance toward this policy, implying that Polish citizens will bear the burden at the checkout if a timely continuation or expansion of zero VAT on food is delayed. The government argues that preventive action is necessary to prevent sudden price shocks that could ripple across households and communities as retailers adjust prices in response to any changes in the tax regime.

In ongoing political coverage, observers note that the government has consistently argued for maintaining zero VAT on food or restoring reductions when feasible, while opponents question the fiscal sustainability and budgetary implications. The central question remains: which approach best preserves consumer purchasing power without compromising public finances? The policy debate continues to unfold across parliamentary sessions, with stakeholders urging a clear, decisive course of action that protects Poles from rising food costs. [Citation: wPolityce]

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