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Amendments to the excise duty on 1 January 2013

Standing at the head of the Ministry of Finance, Jacek Vincent Rostowski, in the face of a real economic collapse in our country, is trying to make its effects as low as possible for the state budget.

Standing at the head of the Ministry of Finance, Jacek Vincent Rostowski, in the face of a real economic collapse in our country, is trying to make its effects as low as possible for the state budget.

This is to be done, among other things, by numerous changes in excise duties, which will hit the ordinary wallets...

Standing at the head of the Ministry of Finance, Jacek Vincent Rostowski, in the face of a real economic collapse in our country, is trying to make its effects as low as possible for the state budget. This is to be done, among other things, by numerous changes in excise duties which will hit the wallets of ordinary citizens, in particular those who are smokers.

Article 10 Project Act dated 18 September 2012 the amendment of certain laws relating to the implementation of the budget law presented by the Ministry of Finance 5% the excise duty on tobacco products will be increased. The Ministry of Finance justifies its need to comply with the requirements laid down by European law.

From 1 January 2014 The minimum excise duty on cigarettes shall be at least 60% the weighted average retail price but may not be lower than 90 EUR to 1000 cigarette pieces, this is due to Directive 2011/64 dated 21 June 2011 on the structure and rates of excise duty applicable to tobacco products L 176 to 5 July 2011, hereinafter: Council Directive.

Poland has obtained a transitional period until 31 December 2017 to raise rates to this level. The Ministry of Finance has rightly decided to step up gradually in order to neutralise the social and economic consequences of a one-off but significant increase.

In 2012 The increase was 4%, In 2013 The excise duty on cigarettes will rise again and not last. A raise means that a pack of cigarettes in the new year, with a new excise duty, will cost an average 0.6 PLN more than at present.

In addition, tobacco droughts, or dry tobacco not yet manufactured, will be taxed. The Ministry of Finance explains that further non-taxing of drought to produce tobacco products leads to a significant increase in the grey area. The tax is mainly insisted by the tobacco industry and Customs.

According to the project, tobacco drought will be included in the catalogue of excise products and taxed when sold to entities other than those that are ‘intermediating tobacco operators’ or tax warehouse operators, this also applies to intra-Community imports and acquisitions.

The tax will also apply in the absence of the possibility to determine the entity which sold it. There will be no tax liability for a person with droughts only if the same entity has produced it. The rate is set at 218.4 PLN for every kilogram of drought.

According to the project, the tax rate for cider and perry excise duties, i.e. fermented low-alcoholic beverages, will also be determined. The rate will be 97 PLN from 1 the hectolitre of finished product, which is the same as beer.

The Ministry of Finance estimates that taxation of tobacco drought will bring ok. 380,000,000 PLN additional receipts In 2013 The increase in excise duty on tobacco products is intended to increase the revenue of the budget by more 360,000,000 PLN. In the case of cider and perry, excise duties will be paid in turn ok.

35,000,000 PLN on a yearly basis. So when you sum it up, it gives you this. ok. 800,000,000 PLN, any calculations of the subordinates of Minister Rostowski will, however, prove to be unsuccessful in the event that Poles from 1 January The new year began to massively quit smoking.

Dominic Timula

Tax consultant at the law firm

Russell Bedford Poland Sp. z o.o.

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