Poland’s Prime Minister Mateusz Morawiecki said Thursday that starting in December the government will cut tax on fuels and on energy and will offer bonuses to hardest hit households next year to counter inflation that has reached its highest level since 2001.
Morawiecki said that the so-called “anti-inflation shield” will cost the government some 10 billion zlotys ($2.4 billion) while additional funds will come from spending cuts.
He blamed the inflation, which was 6.8% in October, year-on-year, on higher energy costs, saying they stem from Russia’s gas policy, the European Union’s climate policy and CO2 emission certificate prices, as well as on bonuses that were paid out to help businesses survive the COVID-19 pandemic. Prices have risen on foods, fuels and energy.
“We are offering a large reduction of tax, in order to cushion the effects of the inflation,” Morawiecki said.