Prices for baby and infant clothing is set to rise from next year as a government amendment to the VAT bill, passed today, means that the items will be taxed at a rate of 23 percent, and not the 8 percent discount rate currently in force.

The decision itself is a delay to impose the new VAT regulations on babywear, which were due to be imposed on 1 July this year. The motion was passed by a majority in parliament, Friday morning.

The move to hike VAT on baby and infant clothing comes after a ruling by the European Court of Justice, which declared in October 2010 that Poland must stop using the preferential VAT rate on the items in accordance with EU law. (jb)

Source: PAP