Poland to Reimpose 5% VAT on Basic Foods Amid Falling Inflation

Poland will reintroduce a 5% value-added tax on basic foods in April amid significant decreases in inflation, the country’s finance ministry announced Tuesday.

The country introduced Feb. 1, 2022, a temporary 0% VAT rate on basic foods, which include meat, dairy and cereal products, to help consumers cope with a jump in inflation.

According to preliminary statistical data, inflation in January slowed to 3.9% year-on-year, marking its lowest level since March 2021.

• The annual growth rate of consumer prices of food and non-alcoholic beverages also decreased “significantly” to 4.9% year-on-year, according to the finance ministry. ...