Anti-inflation shield, including lower VAT, will be extended
The Council of Ministers has adopted a proposal to extend until the end of 2022. The Anti-Inflation Shield, under which certain VAT rates have been reduced. Originally, the Shield was to be in force until the end of October.
It will be recalled that under the Anti-Inflation Shield, the government has decided to reduce the VAT rate on food, to which a rate of 5% previously applied, to 0%. Zero VAT is also applied to fertilisers, plant protection products and other agricultural inputs. These are inputs to which a rate of 8% previously applied.
Lower VAT under the Shield has also been extended to natural gas – 0% VAT instead of 23%, electricity and heat have a rate of 5% instead of 23%, and motor fuels are subject to 8% tax instead of 23%.
There are also some excise duty preferences under the Anti-inflationary Shield.