Poland to Hike Excise Duties
November 23, 2011 Taxation in Poland
WARSAW – Polish taxpayers will soon see a price hike for tobacco and fuel products as the government looks to raise excise taxes in order to boost tax revenues.
A new set of legislative regulations were submitted to the parliament of Poland on November 22nd setting out a series of new tax increases on fuel and tobacco products, aimed at quickly raising the country’s tax revenues.
If the bill is approved by parliament, the country will see an increase of 4 percent to the current excise tax on tobacco products. It is estimated that the change will garner an additional PLN 245 million in tax revenues per year.
Fuel excise duties will also be raised, and are expected to bring in an additional PLN 2.2 billion in tax revenues per annum.
Earlier, on November 18th the newly elected Prime Minister of Poland Donald Tusk proposed new tax regulations tax rates on the extraction of mineral resources, such as shale gas, crude hydrocarbons, copper and silver. However, the measures will only be evaluated later next year, and will take additional time before they can be implemented, and the raised excise duties are aimed at boosting tax revenues in the short term while the changes are being implemented.
In combination, all of the newly proposed tax changes are focused on ensuring that Poland’s budget deficit does not rise higher than 55 percent of the country’s GDP. The constitution of Poland mandates that if the deficit exceeds the preset limit, the government will be forced to instate a series of drastic spending cuts in order to prevent excessive debt growth and reign in the fiscal situation.
Photo by vajlentka