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Excise duty on alcohol. The government plans to raise the excise tax, comments the Confederation Lewiatan

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The government plans to raise the excise tax on alcohol. In 2022, it is expected to increase by 10 percent, and every year by 5 percent in the following years. “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 Lewiatan Confederation. The organization warns that the entry into force of the changes “will further drive the inflationary spiral”.

It is a draft act amending the act on excise duty. The regulations went to public consultations and arrangements, which ended on Friday. The government plans to adopt new regulations in the fourth quarter of this year.

According to the draft, the excise duty rates for ethyl alcohol, beer, wine, fermented beverages excluding cider and perry (alcohol made from pears) and intermediate products will be higher by: 10 percent. in 2022 and by 5 percent every year. in the years 2023-2027.

The proposed law is opposed by the Lewiatan Confederation, which protests – as emphasized in Tuesday’s communiqué – “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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Excise duty on alcohol – Lewiatan Confederation comments

According to Przemysław Pruszyński, tax advisor and expert of the Lewiatan Confederation, raising rates will increase inflation in Poland. “At a time when the Polish economy is struggling with the highest inflation in 20 years, raising excise duty rates will be an additional inflationary factor, the impact of which will coincide with high tax increases in the Polish Lada” – pointed out Pruszyński.

According to Lewiatan, “additional burdens should not be introduced, without appropriate vacatio legis, in a way that severely interferes with the adopted and planned business models and budgets of companies”

“We do not accept an increase in the excise duty on beer by 10 percent in 2022 and by 5 percent in subsequent years, until 2027. This is a scale of growth unprecedented since the introduction of the excise tax in Poland. Over the last 20 years, the excise duty on beer has increased by 53 Now, it is expected to increase by the same amount in just seven years “- noted the Lewiatan Confederation expert.

The organization pointed out that the introduction of the excise duty increase on alcohol is justified by the need to limit its availability. The consequence of this is better protection of citizens’ health and thus reduction of costs related to the prevention and treatment of addictions and diseases related to alcohol consumption.

Increase in excise duty rates on alcohol – receipts

Meanwhile, according to Lewiatan, “if not the only one, then the overriding goal of the increase is to obtain further huge amounts from companies and citizens to the state budget”. “The impact assessment of the regulation did not indicate that at least one zloty from a very high increase should go to campaigns on conscious and responsible use of alcohol products, or to centers and support groups for people struggling with addictions. This shows that the fiscal goal of the regulation is the most important and raises strong opposition “- underlined in the Tuesday press release.

The government announced in the regulatory impact assessment that in 2022, thanks to the increase, an additional PLN 2 billion will be allocated to the state budget. In turn, in the first five years of the new regulations being in force, the state credit union will be credited with PLN 33 billion, and within 10 years – PLN 103 billion.

Leviathan is also against 10 percent. an increase in excise duty on spirits. “There is no need to carry out inflation indexation of alcoholic products as high and constantly growing inflation is already reflected in the retail prices of such beverages” – the organization stated.

Konfederacja Lewiatan is a Polish business organization that brings together over 4,100 companies employing a total of over 1 million people. The organization is a member of the Social Dialogue Council.

Main photo source: Shutterstock



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