ADVERTISEMENT

Supermarket chains cut prices in Poland following VAT suspension

Retail

Lidl and Aldi have become the first supermarket chains in Poland to announce that they will lower the prices of thousands of their products in response to the government's decision to suspend VAT (value-added tax) on food, gas, and fertilizer as a way to soften the blow of soaring inflation, according to a report by Notesfrompoland.com.

After announcing the tax cuts last week as part of the government's latest "anti-inflation shield", Prime Minister Mateusz Morawiecki warned that for them to translate into lower consumer costs – estimated at PLN 45 (EUR 10) per month for the average household – retailers would need to lower their prices commensurately. In response to the call, Lidl has announced that it will cut the price of 2,000 products.

The chain did not publish a detailed list but said that cheaper products would include milk, butter, cream, bread, apples, carrots, and potatoes, as well as garden soil, fertilizers, and plant care products. The chain also noted that, according to an ASM Sales Force Agency report published in December, the price of a basket of basic goods at its stores dropped by 5.13% last year despite growing inflation.

Another discounter, Aldi, has followed suit, announcing that it would lower the prices of around 2,000 products from 31 January, a day ahead of the VAT cut. Experts have also warned that, after the VAT cuts expire (which is currently due to take place after six months), inflation could be driven up to over 10%, reported Radio ZET.

ADVERTISEMENT

Business chamber's biannual business confidence index falls Analysis

Business chamber's biannual business confidence index falls

Parl't elects Orbán prime minister Parliament

Parl't elects Orbán prime minister

New managing director at LG Electronics Hungary Appointments

New managing director at LG Electronics Hungary

Hungary Grande Partenza 'exceeded all expectations' - gov't ... City

Hungary Grande Partenza 'exceeded all expectations' - gov't ...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.