Finance Minister Andrzej Domański discussed possible price increases after expanding the VAT rate during the summary of Donald Tusk's first 100 days of government. Domanski presented advancement in the implementation of electoral promises by the current government, noting that they were in a "war-law situation".
In an interview in the programme "Graphiti", the Minister of Finance focused on explaining how 100 circumstantial commitments were implemented, answering questions about, among others, the amount of free, Poland's accession to the euro area and the increase in VAT. During the speech, Domański utilized the phrase "almost war situation".
Domański in a conversation with Polsat News straight denied the words of Jarosław Kaczyński, who claimed that Donald Tusk's current government policy is aiming to bring Poland into the euro area, despite social opposition.
"Poland does not meet the convergence criteria, those criteria that would let us to enter the euro area. The discussion among economists continues. It is clear that president Kaczyński is trying to usage this argument for the current cynical political game” “The head of the finance department explained. Andrzej Domanski.
Lega artis AppDomański on VAT increase: we are in a situation of war law
The Minister of Finance besides commented on the return of the VAT rate on food to 5 percent, which will enter into force from 1 April.
"We had to return to the VAT rate once. There is no request to put this aside for “holy ever”. I am convinced that there will be no better time and the price increase will be moderate. No food price jump will be made” said Andrzej Domanski.
When examining the implementation of 100 concrete electoral promises, the minister acknowledged that the inability to implement 1 of these demands in the coming years is due to the advanced budgetary expenditure caused by the global situation and the serious military threat in our region.
‘We're in a war situation. We've got fast-growing arms spending.. In 2024 we will spend more than 4 percent of our GDP... The scale of defence spending is truly high. We are implementing the remaining points from our 100 specifics, due to the fact that I will remind you that we have raised teachers' salaries by 30%, by 20% for the budgetary sphere, increased spending on wellness care" “The head of the finance department stated in an interview on air.
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