Poland’s VAT Slowdown at End of 2023 Surprises Economists

Polish budget data for Dec. 2023 show an unexpected slowing of VAT inflows at the end of last year, according to economists.

• READ: Poland Jan.-Dec. Government Budget Deficit PLN85.57b
  • Budget shortfall driven by slowing proceeds from VAT that amounted to about 12b zloty in Dec. compared with 20b-26b zloty in previous months
• MBank economists say that lower proceeds from VAT are major reason why 2023 tax revenues were 30b zloty, or almost 6% lower than plan
  • Such shortfall of major tax show fiscal challenges for 2024 ,as fulfilling budget plan requires now increase of VAT collection by 30% Y/y
• Santander ...