ANTI-INFLATION SHIELD

The government recently announced the creation of a so-called “anti-inflation shield. Its main provisions are:

• Lowering the VAT rate on natural gas from 23% to 8%,
• Abolishing excise taxes on electricity and reducing the VAT rate on electricity from 23% to 8%,
• Reducing VAT on heat from 23% to 8%,
• Reducing the price of fuel by reducing excise taxes and lowering the emission fee to 0 by the end of May 2022.
• Implementation of the shield allowance.

In connection with the creation of the shield, the Director of the UKSW Center for the World Economy, Prof. Konrad Raczkowski, PhD, gave an interview to Polish Radio 24. The following are the most important statements.

– This benefit and help for the lowest earners will be felt, but we also have the other side of the coin. Realistically, the shield has a chance to reduce inflation by about one percentage point, it will begin to fall more however only in the second half of the year, but not to the level of two or three percent, such a scenario will not happen in the next few years, and this is due to the situation on world markets.

– As for electricity prices, the change will be felt, it will be regulated, that is, from the new year, the operators will raise electricity prices in connection with this, the price, this additional benefit, will be zeroed out. As for gas, on the other hand, here prices can be regulated from the institutional level, and as for gasoline prices, if the margin for Orlen and independent stations is close to 50 cents per liter of fuel, they will sue to make it work for gas stations.

The entire interview with Prof. Raczkowski can be heard at: https://www.polskieradio24.pl/130/5925/Artykul/2858175,Tarcza-antyinflacyjna-Raczkowski-pomoc-dla-osob-najmniej-zarabiajacych-bedzie-odczuwalna