The government plans to raise the excise tax on alcohol and cigarettes. The bill on this matter has already been submitted to the Sejm and has been sent for first reading – we read on the website of the lower house of our parliament. Excise duty on alcohol is expected to increase by 10 percent in 2022 and by 5 percent each year over the coming years until 2027. According to the rulers, the changes are aimed at reducing the consumption of stimulants by consumers.
It is a draft act amending the act on excise duty. The new regulations are to enter into force from the beginning of 2022.
The next Sejm session is scheduled for October 28-29.
Excise duty on alcohol and cigarettes – changes
According to the draft, excise duty rates on ethyl alcohol, beer, wine, fermented beverages excluding cider and perry (pear alcohol) and intermediate products will be 10 percent higher in 2022. The proposed regulation also provides for an increase in the minimum excise duty rate on cigarettes from the current 100 percent to 105 percent of the total excise duty amount and the excise duty rate on innovative products by increasing the amount rate by 100 percent. It added that a minimum excise duty rate for smoking tobacco in the amount of 100 percent of the total excise duty would also be introduced.
In turn, for the years 2023-2027, it was proposed to introduce a schedule of increases in excise duty on: ethyl alcohol, beer, wine, fermented beverages and intermediate products every year by 5 percent; cigarettes, tobacco for smoking cigars and cigarillos and innovative products as well as raw tobacco by increasing the quota rate every year by 10 percent.
Alcohol and cigarette prices
The authors of the draft indicated in the justification that “an increase in excise tax rates will mean an increase in the prices of alcoholic beverages”.
The government calculations show that if the fiscal burden is passed on to consumers, the likely price increase will be: in the case of a bottle of vodka, 40 percent. – about PLN 1.50; dry wine bottles (0.75l) – approx. 16 groszy; a half-liter can of beer – approx. 6 groszy; packets of cigarettes – about 30 groszy.
“The increase in the excise duty rates on alcoholic beverages is primarily aimed at limiting the consumption of stimulants by consumers. The availability of alcohol in Poland is too high, and taking into account the inflationary factor, without increasing the excise duty rates, the affordability of alcoholic beverages would continue to grow” – emphasized in the justification .
As noted, the same goal is guided by the increase in excise duty rates on smoking tobacco and cigarettes, starting from 2023, “that is, first of all, to limit the consumption of the above-mentioned products by consumers, especially by minors”.
Proceeds to the budget
The state budget will benefit from the changes. As stated in the regulatory impact assessment, the government assumes that in 2022, thanks to the increase, an additional PLN 2 billion will be allocated to the state budget. In 2023, revenues to the state budget are to amount to almost PLN 4.5 billion, in 2024 – almost PLN 6.7 billion, in 2025 – about PLN 9 billion, 2026 – over PLN 11.4 billion. In turn, from 2027, the state budget is to receive an additional PLN 14 billion annually.
During the first ten years of the new regulations being in force, the state credit union is to fund an additional PLN 103 billion.
The Lewiatan Confederation opposes the proposed actwhich protests – as she emphasized a few days ago – “against drastic increases in excise duty on alcohol from January 1, 2022”. “The increase is of a purely fiscal nature and serves to obtain further huge amounts from companies and citizens for the immediate needs of the state” – assessed the organization.
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