Saturday May 21st, 2022 5:59AM

Poland announces tax cuts meant to ease soaring inflation

By The Associated Press

WARSAW, Poland (AP) — Polish Prime Minister Mateusz Morawiecki on Tuesday announced a second round of sales tax cuts as part of the right-wing government’s efforts to fight inflation after it reached a 21-year high last month.

Morawiecki blamed surging consumer prices on high energy costs, saying they are the result of Russian gas prices and the European Union’s policy on greenhouse gas emissions. However, the head of the International Energy Agency has said a jump in demand for fossil fuels plays a bigger role, and opposition leaders have accused the ruling party of clinging to coal for too long.

The prime minister said rebounding demand for goods since the depths of the coronavirus pandemic also contributed to the inflation spike.

From February through July, the tax on engine fuels will be cut to 8% from 23%, the government said. There will be no tax on gas used for cooking and heating or on artificial fertilizers, which are made with gas. On some foods, it will drop to zero from 5%.

Morawiecki appealed to food sellers to lower their prices accordingly and said people should see a positive change in the coming weeks. The move was expected to cost the government up to 20 billion zlotys ($5 billion) but should result in reducing inflation by some 1.5 percentage points, he maintained.

The announcement comes as the government is facing strong criticism from individuals and professional groups over the complicated personal income tax system it launched on Jan. 1.

Morawiecki has said the “Polish Order” system will benefit most Poles, especially those with modest earnings, but January payouts to police and pensioners have been significantly lower than in December, drawing public ire.

The government has accused employers' accountants of incorrect calculations and promised equalizing payouts in the coming weeks.

Other anti-inflation tax cuts and aid for the hardest-hit households were announced in November and took effect on Dec. 20, costing the government some 10 billion zlotys ($2.5 billion.)

The state statistical office said consumer prices rose 8.6% in December compared with a year earlier, the highest rate since November 2000.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy
© Copyright 2022
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Fed's Powell: High inflation poses a threat to job market
Federal Reserve Chair Jerome Powell said Tuesday that high inflation is a serious threat to the Fed’s goal of helping put more Americans back to work, and said the Fed will raise rates more than it now plans if needed to stem surging prices
2:31PM ( 41 seconds ago )
California lawmakers debate universal health care proposal
California lawmakers are set to debate whether to create the nation's first universal health care system
2:11PM ( 20 minutes ago )
2nd election for Amazon workers in Alabama will be by mail
A federal labor board said that Amazon workers in a facility in Bessemer, Alabama will vote by mail next month in a re-run election to decide whether or not to unionize
2:10PM ( 22 minutes ago )
Associated Press (AP)
EPA moves to crack down on dangerous coal ash storage ponds
The Environmental Protection Agency is taking its first major action to address toxic wastewater from coal-burning power plants, ordering utilities to stop dumping waste into unlined storage ponds and speed up plans to close leaking or otherwise dangerous coal ash sites
1:08PM ( 1 hour ago )
Bank of America slashes fees for account overdrafts
Bank of America is slashing the amount it charges customers when they spend more than they have in their accounts and plans to eliminate entirely its fees for bounced checks
12:58PM ( 1 hour ago )
US women, men have not committed to single-pay structure
The head of the U.S. Soccer Federation says the unions for the women’s and men’s national teams have not committed to agreeing to a single pay structure
12:56PM ( 1 hour ago )
AP Business
Outbreaks, bottlenecks expected to slow global growth in '22
The World Bank is downgrading its outlook for the global economy
10:49AM ( 3 hours ago )
Federal Reserve's Powell: High inflation 'exacts a toll'
High inflation is taking a toll on American families
10:39AM ( 3 hours ago )
US stocks slip as Wall Street foresees higher interest rates
Stocks fell in morning trading on Wall Street Tuesday as traders try to calibrate how markets and the economy will handle the higher interest rates that are likely on the way from the Federal Reserve this year
10:36AM ( 3 hours ago )
AP Business - Economy
California lawmakers debate universal health care proposal
California lawmakers are set to debate whether to create the nation's first universal health care system
2:11PM ( 20 minutes ago )
49ers-Cowboys playoff rivalry resumes after long wait
Kyle Shanahan was a teenager watching on the sideline when the heated playoff rivalry between the Dallas Cowboys and San Francisco 49ers reached a fever pitch with three straight NFC title game matchups
1:57PM ( 34 minutes ago )
Hospital helper nearly overlooks brother after NYC fire
A New York man who helped take people to the hospital after a deadly New York City fire nearly overlooked his own brother in the aftermath of the blaze
1:57PM ( 34 minutes ago )
AP source: MLB labor talks to resume after 42-day break
Major League Baseball and the players’ association are scheduled to meet Thursday in the first negotiations between the parties since labor talks broke off Dec. 1
1:54PM ( 37 minutes ago )
Browns expect Mayfield to 'bounce back" as starter in '22
Baker Mayfield’s starting job is secure
1:54PM ( 37 minutes ago )