Poland’s government published regulations lowering VAT and excise duties on fuels, alongside a law capping retail prices, effective late March and early April.
Fuel Tax and VAT Reduction Details
Regulations published in the Journal of Laws detail reductions in VAT and excise duties on fuels. The VAT rate on fuels will be lowered to 8 percent from March 31st to April 30th, while the excise duty reduction will be in effect from March 30th to April 15th.
The Finance and Economy Ministry’s regulation amending the VAT rate regulation will come into force on March 31st. This applies to gasoline, diesel, and biocomponents, regardless of CN code.
Excise Duty Rates
A second regulation from the Ministry of Finance and Economy regarding excise duty reductions on certain fuels will take effect on March 30th. The reduced excise rate will be 1239 zł per 1000 liters for gasoline, 880 zł per 1000 liters for diesel, and 880 zł per 1000 liters for biocomponents.
Temporary Excise Power and Budget Impact
A newly published amendment to the excise duty law allows the Finance Minister to temporarily lower excise rates on fuels by regulation until June 30th. The Finance Ministry estimates the excise reduction will cost the budget 700 million zł monthly, and the VAT reduction 900 million zł monthly.
Price Control Mechanism Introduced
Another significant legal act published on Saturday enables the lowering of fuel prices at stations. This involves an amendment to the law on oil reserves, introducing a mechanism for calculating the maximum fuel price.
Implementation Timeline and Price Expectations
Energy Minister Miłosz Motyka stated that an announcement regarding maximum fuel prices will be published as early as Monday, with price changes at stations expected as early as Tuesday. Finance Minister Andrzej Domański confirmed lower prices are expected from Tuesday.
Maximum Price Calculation and Penalties
The maximum price will be calculated based on a formula including the average wholesale price, excise duty, fuel surcharge, a sales margin of 0.30 zł per liter, and VAT. Selling fuel above the maximum price will be punishable by a fine of up to 1 million zł, with controls conducted by the National Revenue Administration.
Sellers are permitted to offer fuel at a price lower than the maximum. Key market players will be required to provide daily updates to the Energy Ministry.
Announcement and Effective Date of Maximum Price
The maximum price will be announced by the Energy Minister and will take effect the day after publication. If announced before non-working days or holidays, the rate will be valid until the next working day.
Legislative Process
The government adopted the draft laws on maximum prices and temporary excise reduction at an extraordinary session on Thursday. Parliament approved the laws on Friday, and they were signed by the President the same day.
