Excise tax on ethyl alcohol, beer and wine is expected to increase by 10 percent in 2022 and by 5 percent annually by 2027. The increase is also to apply to cigarettes – it results from the list of legislative works of the Council of Ministers. In the regulatory impact assessment, the government announced that over 10 years, thanks to changes to the budget, over PLN 100 billion will be allocated to the budget.
The bill announced in the list of legislative works of the government provides for an increase in the rates of excise duty on excise goods that are stimulants, ie ethyl alcohol, beer, wine, fermented beverages, excluding cider and perry, intermediate products, cigarettes, smoking tobacco and innovative products.
Increase in excise tax rates on alcohol and tobacco – budget revenues
As we learn from 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 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 in 10 years – PLN 103 billion.
In 2023, revenues to the state budget are to amount to almost PLN 5 billion, in 2024 – almost PLN 6.7 billion, in 2025 – about PLN 9 billion, 2026 – PLN 11.4 billion. In turn, from 2027, the state budget is to receive an additional PLN 14 billion annually.
As stated in the list of works, the last one change in excise duty rates on alcohol and tobacco took place on January 1, 2020 and was 10 percent.
Higher excise duty on alcohol and cigarettes
According to the assumptions of the draft, the excise duty rates for ethyl alcohol, beer, wine, fermented beverages excluding cider and perry (alcohol from pears) and intermediate products will be higher by: 10 percent. in 2022 and by 5 percent every year. in the years 2023-2027. In addition, from 2022, the minimum excise duty rate on cigarettes will be increased to 105%. the total amount of excise duty, calculated on the price equal to the weighted average retail selling price of cigarettes.
The government also plans to introduce a minimum excise tax rate of 100% on smoking tobacco from 2022. the total amount of excise duty, calculated on the price equal to the weighted average retail selling price of smoking tobacco and increasing the excise duty rate on innovative products by increasing the amount rate by 100%. from January 1, 2022 and by 10% every year in the years 2023-2027.
The government’s information also announced an increase in excise tax rates on cigarettes and smoking tobacco by raising the quota rate by 10 percent every year. in the years 2023-2027.
Excise duty on cider, perry, electronic cigarette liquids
The scope of the proposed indexation of excise duty on stimulants excludes cider and perry (alcohol from pears) with a power not exceeding 5%. (these products will remain taxed with the preferential excise tax rate of PLN 97 per 1 hectolitre of finished product) in order to develop this market and indirectly support fruit production, which is one of the pillars of Polish agriculture.
The exemption also covers the excise duty on liquids for electronic cigarettes and cigars and cigarillos, for which the rates are already high in relation to other tobacco products, as well as in relation to the EU.
The planned date for the adoption of the draft by the Council of Ministers is the fourth quarter of 2021.
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