"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.
(Reporting by Anna Wlodarczak-Semczuk and Pawel Florkiewicz; Editing by Kirsten Donovan)
