Poland to decide on fuel VAT cut within days amid budget concerns

Poland's Finance Minister Andrzej Domański stated that a decision on potentially reducing the Value Added Tax (VAT) on fuel will be made within days. He cited stabilizing oil prices and low diesel availability as factors, but highlighted budget limitations as a significant constraint.

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We are analyzing the situation. Oil prices are stabilizing. Of course, we know that prices at gas stations are still high, and we want them to be lower. But we have certain budget limitations, and President Duda decided to block the law (on windfall profits from fuel companies), thanks to which we would have a little over 4 billion zloty more in the budget.

Domański explained that the government faces budget challenges, partly because President Andrzej Duda sent a law imposing a tax on windfall profits from fuel companies to the Constitutional Tribunal. This referral blocks an anticipated 4 billion zloty (approximately $1 billion) in additional budget revenue.

"We are analyzing the situation. Oil prices are stabilizing. Of course, we know that prices at gas stations are still high, and we want them to be lower," Domański said in a TVN24 interview. He added that the state must be prepared for "all scenarios."

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We know that the problem is not only the high price of oil but also the low availability of diesel.

Legislative measures currently only allow for a VAT reduction on fuels. The minister indicated that a few more days are needed to determine if such a decision will be implemented. Previously, VAT and excise tax reductions on fuels expired on June 30th, and the "Lower Fuel Prices" program cost the state around 4.7 billion zloty.

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But whether such a decision will be made, we still need to leave ourselves a few days.