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Poland wants to cut tax on fuel to soften blow from inflation, says PM - Reuters

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WARSAW, Dec 22 (Reuters) - Poland wants the European Union to allow it to cut the value added tax (VAT) on engine fuel to soften the blow from surging inflation, the prime minister said on Wednesday.

Poland's ruling nationalist Law and Justice party (PiS) has launched a package of tax cuts on petrol, gas, heating and electricity combined with cash handouts to households.

It also wants to cut VAT on food to zero, but says it needs Brussels' approval because of European Union rules. Finance Minister Tadeusz Koscinski told public radio Poland wanted to cut the tax on fuel to 8% from 23%.

"I have asked the European Commission ... about cutting the VAT on fuel, nobody else in Europe has done that ... We are trying to come up with the right solutions together, it will certainly take several more weeks," Polish Prime Minister Mateusz Morawiecki told a news conference.

Inflation in Poland was 7.8% in November, according to statistics office data.

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Reporting by Pawel Florkiewicz and Anna Wlodarczak-Semczuk; Editing by Toby Chopra

Our Standards: The Thomson Reuters Trust Principles.

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Poland wants to cut tax on fuel to soften blow from inflation, says PM - Reuters
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