The Polish Ministry of Finance has recommended that the government adopt a draft law to amend the excise tax rate. Which will deal with the tax on vapes independently and no longer include the tax provisions for atomizing equipment.
Polish Ministry of Finance: Urgent review of the GST amendment
In a letter from the Prime Minister’s office dated Sep 25. The Polish Finance Ministry said that the Standing Committee of the Council of Ministers adopted the draft law on the revision of the excise tax rate and recommended that the government adopt the bill. The project does not include provisions for an excise tax on atomizing equipment.
The letter reads: “This project has been approved by the Standing Committee of the Council of Ministers and shared with the Council of Ministers.”
Under the latest bill to amend excise taxes on tobacco products. The 2025 budget revenue is expected to be 3.5 billion PLN ($900 million), compared to 4.2 billion PLN ($1.1 billion) in the original version. This means that public finances will lose 700 million zlotys ($180 million) in revenue.
This project will not pay tax on atomizing equipment, which will be dealt with by a separate bill. The Finance Ministry has asked the Prime Minister’s Office to urgently deal with the GST bill.
- “Given the urgency of the matter, the Council of Ministers is requested to consider the bill at the first opportunity.”
Vape tax items may be legislated separately
Finance Minister Andrzej Domanski in July this year. (Andrzej Domacenski) has said that under the plan formulated by his predecessor. The excise tax on ethanol will rise by 5% and the tax on cigarette products will rise significantly.
According to the minister’s summer announcement, excise duty on traditional cigarettes could rise by 25% from the New Year. Vapes, especially those used for filling, are expected to see their excise tax increase by 75%.
In addition, media reports in Sep said that the Polish government may consider the tobacco industry’s criticism and split the consumption tax increase into two stages. The first phase will be implemented on Jan 1, 2024, and the second phase will take effect on May 1, 2025.
