Saturday, December 11, 2021

Polish PM is fighting the European Commission for a temporary reduction in taxes on food

 "I hope that next week the prime minister will fight for a temporary reduction in VAT on food in the European Commission, and will also obtain consent that financial institutions cannot buy ETS certificates," - said Finance Minister Tadeusz Kościński on Friday.

In the interview on Polish radio, Kościński spoke about the steps the government takes to curb the rise in inflation in Poland. He emphasized that Prime Minister Mateusz Morawiecki is fighting for permission from the European Commission to reduce VAT on food to zero. He noted that there is currently no legal basis for applying such a reduction in Poland, even though this week, EU finance ministers reached an agreement on the amendment of the EU VAT directive. 

"This directive will come in two or three years. The European Parliament must issue an opinion, then the European Council must give its consent," - said Kościński. He added that he hopes that the Prime Minister will win a temporary cut in VAT on food at the European Council next week.

The minister also referred to the changes to the EU emissions trading system (ETS) proposed by Poland. He emphasized that CO2 emission allowances are currently purchased not only by entrepreneurs emitting CO2s but also by financial institutions. "- As they started to buy, it increased the prices. Financial institutions need to be blocked from buying certificates, then their price will fall, and the price of energy will also fall," - said the head of the Ministry of Finance. He added that there was a good chance that the prime minister would obtain such consent.