The European Commission has officially approved revisions to Poland’s National Recovery Plan (KPO), removing previously negotiated taxes on internal combustion engine vehicles to avoid potential penalties reaching 4 billion euros.
Elimination of Vehicle Taxation
European Commission spokesperson Maciej Berestecki confirmed the approval of changes to the Polish National Recovery Plan. The revised document removes several fiscal measures, most notably the tax on combustion engine vehicles that the previous government had originally agreed to implement.
Jan Szyszko, Deputy Minister of Funds and Regional Policy, announced the agreement on May 13. He specified that the removal covers three separate charges established under the PiS administration: taxes on owning a combustion car, fees for vehicle registration, and levies on companies maintaining fleets of two or more cars.
Financial Outlook and Next Steps
Approval of these modifications is a prerequisite for Poland to submit further payment applications. The government intends to file one more application for KPO funds before the end of the year.
To date, 68 billion PLN (16 billion EUR) has been distributed to companies and local governments. The Ministry of Funds and Regional Policy expects to disburse an additional 140 billion PLN (33 billion EUR) by the end of the year.
Progress on Recovery Funding
On April 23, the EC positively assessed Poland’s fourth payment request for 7.2 billion EUR. Disbursement was contingent upon reforms such as the expansion of the National Labor Inspectorate’s (PIP) powers, a bill for which was signed into law on April 2.
The KPO consists of 59 investments and 54 reforms designed to bolster the national economy. Poland is set to receive a total of 233 billion PLN (54.71 billion EUR), split between grants and preferential loans. The final deadlines for all KPO objectives and payment applications are set for August and September of this year.