Two years ago, a schedule of annual increases in excise duty on alcohol and tobacco products was adopted. According to it, excise duty on cigarettes is to increase by 10 percent each year. And it has been increasing in recent years. Ministry of Finance wants to speed up this process and raise excise duty by 25 percent next year. Such a move is opposed by the tobacco industry, with whose representatives politicians met this week.
It has been decided. Cigarettes will be more expensive
“Republic” describes that Deputy Minister Jarosław Neneman clearly explained that there was no question of abandoning the faster excise duty increase. He only suggested to the industry that it could be divided into two stages. From January 1, 2025, it would increase by 10 percent, and from January 1, May 2025 by another 15 percent. However, tobacco trading companies would have to sell all stocks of tobacco products subject to excise duty at the rate applicable from 1 January before 1 May 2025.
Although these regulations are still to be subject to consultation, the Ministry of Finance has clearly emphasized that the rates are non-negotiable. However, pushing through these changes would be contrary to the provisions of the coalition agreement. Tobacco industry representatives reminded politicians that they had promised “the principle of a minimum six-month vacatio legis for changes in tax law”. If excise duty increases from the beginning of the year, this will not be kept.
Donald Tusk's government is preparing a tax turmoil
“Republic” reveals that the changes in excise duty are one of several laws that will shake up the Polish tax system in the coming months. The ministry is also reportedly preparing to abolish the preferential rate on hemp products for smoking or inhaling and to extend the so-called reverse charge VAT for electricity and gas trade.
Excise duty on cars is also in for a minor revolution. A refund of excise duty on cars is being prepared. cars temporarily registered in Poland and then exported abroad, and an exemption from this tax for passenger cars used in research and development activities. In addition, the changes are to cover the settlement of PIT and CIT and the taxation of real estate used by companies. Another novelty is to be the introduction of a global minimum tax. However, we do not know the details of these changes yet.