(Bloomberg) -- Poland will temporarily cut taxes on electricity, gas and excise on fuel to help cushion the impact of consumer prices that have jumped to a two-decade high.
The government will give up 10 billion zloty ($2.4 billion) in revenue from value-added tax on electricity and gas, applicable for three months starting from January. For fuel, the measure will be in place for five months. The government also plans subsidies for the nation’s poorest.
“We’re responding to market challenges, to energy prices, which went wild on global markets,” Deputy Prime Minister Jacek Sasin told reporters on Thursday.
Annual inflation has become a source of concern for Polish consumers and a hot political issue. The government is stepping in to boost the efforts of the central bank, which raised the key interest rate by 115 basis points to 1.25% in the past two months.
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