WARSAW (Reuters) - Poland's finance ministry said on Tuesday that a 0% value added tax (VAT) rate on food products would not be extended after March as inflation eases.
"With regard to the latest inflation readings and forecasts of price dynamics of basic food products covered by the transitional 0% VAT rate, the Ministry of Finance has decided not to extend the periodic reduction of the VAT rate on basic food products after March 31, 2024," it said in a statement.
Polish Prime Minister Donald Tusk said last week he didn't exclude a return to the 5% VAT rate that previously applied to food products.
The reduced VAT rate on food products has been in place since February 2022 after annual CPI inflation reached 9.2% the previous month. It peaked at 18.6% in February 2023 before falling to 3.9% by January this year, the lowest since March 2021 with further drops seen.