Gov't may extend anti-inflation shield

2022-05-17 12:15 update: 2022-05-20, 14:55
Photo PAP/Piotr Nowak
Photo PAP/Piotr Nowak
The government may extend its anti-inflation shield in whole or in part, Poland's prime minister told a press conference on Tuesday.

Mateusz Morawiecki said that, as yet, no decisions had been made about extending the shield, but its prolongation was "highly probable."

"The government is considering the possibility of extending all or parts of the anti-inflation shield beyond its July deadline. There are no decisions yet, but it's highly probable we will extend the shield in whole, or most of its most crucial elements," Morawiecki said.

Introduced on February 1, the shield has lifted VAT on gas and reduced VAT on electricity and heating to 5 percent.

Morawiecki said the inflation peak in Poland was expected to appear in the second half of this year. He added that reducing inflation would largely depend on the development of the Russia-Ukraine conflict, which has helped drive up prices of raw materials. (PAP)