Poland Extends Fuel Price Brake Until May

VAT and excise tax rates for gasoline and diesel will remain in effect until May 15. The reduction of VAT on fuels from 23% to 8% is a temporary measure under the 'Lower Fuel Prices' program. According to regulations published in the Journal of Laws, the action was also reduced to the minimum permissible levels. MP Janusz Cieszyński revealed a letter from the Ministry of Health regarding related budget costs for medication subsidies. The foundation for the program is reportedly generating high costs for the national budget. The program aims to mitigate rising energy costs, with current prices cited at 1.70 Euro. While two-thirds of the population support the measure, economic experts criticize the extension for reducing state tax revenue and increasing the national budget deficit. Experts suggest Europe should focus on strategic responses rather than tax-based consumption measures.