2,000 products at lower prices. Big chains are getting ready for changes

The government announced a cut VAT from 5 to 0 percent for most basic necessities. The changes are to come into force in February. To them are already preparing, among others the largest supermarket chains operating in Poland.

“As of February 1 this year, the legislator lowers the VAT rate to 0 percent on all food products that have been subject to the 5 percent VAT rate so far. The tax reduction will also apply to products such as garden soil, fertilizers or plant protection products“- we read in the Lidl announcement, quoted by TVN24.

Network representatives estimate that can be overpriced at least 2,000 products. Including e.g. butter, milk, cream, bread, apples, carrots, potatoes etc.

See also: Money. It counts

Aldi estimates the number of discounted products in a similar way. Network representatives even announce that January 31st prices will be lowered. The company said it would “not wait for the bill” and would lower prices earlier. Interestingly, in many cases the reduction is to be even higher than 5 percent.

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The industry is not so sure about reductions

Large chain stores promise discounts, but not all representatives of the retail industry are so optimistic about the VAT reduction. The Polish Chamber of Commerce (PIH) warns that some consumers may be disappointed, because in many cases products in stores will not be cheaper by 5 percent.

Before a product hits the store, it goes through many hands. And the temptation to take advantage of the opportunity to raise prices will be great.

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– Numerous economic experts and market practitioners point out that some entities in the supply chain may try to increase their profitability, taking advantage of the VAT reduction and offering traders, i.e. wholesalers and retailers, products at higher prices, which at least it will eliminate the effect of the reduced taxMaciej Ptaszyński, vice-president of PIH, indicates.

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