The Polish government signed regulations reducing VAT and excise duties on fuels, with lower prices expected at stations as early as Tuesday.
Government Announces Fuel Price Reduction Measures
The Polish government has signed regulations lowering VAT and excise duties on fuels, as announced by Minister of Finance and Economy Andrzej Domański on Saturday. He indicated that consumers should see lower prices at gas stations starting Tuesday.
Domański confirmed the signing of the regulations on the X platform, emphasizing the anticipated price reductions.
New Laws Published to Curb Fuel Price Increases
Two laws aimed at lowering fuel prices were published in the Journal of Laws on Saturday. These new regulations will limit price increases through excise duty reductions and the introduction of maximum price controls.
CPN Package Details: VAT and Excise Cuts
As previously announced by Prime Minister Donald Tusk, the “CPN – Lower Fuel Prices” package includes a reduction in the VAT rate on fuels from 23% to 8%. The excise duty on fuels will be reduced to the lowest level permitted by the European Union: 29 groszy per liter for gasoline and 28 groszy per liter for diesel.
Price Controls and Implementation Timeline
Energy Minister Miłosz Motyka stated on Saturday that the announcement regarding maximum fuel prices will be published as soon as Monday, with price changes at stations expected to occur no later than Tuesday. He cautioned that administrative, legislative, and technical adjustments, such as system and fiscal cash register updates, will influence the timing of the price changes.
Daily Maximum Price Publication and Flexibility
According to the regulations, the Ministry of Energy will publish daily maximum fuel prices. Stations will be allowed to offer prices lower than those set by the ministry.
Maximum Price Calculation Mechanism
The law, which also amends the act on oil reserves, introduces a mechanism for calculating the maximum fuel price. This price will be based on a formula including the average domestic wholesale fuel price, plus excise duty, fuel fee, a sales margin of 0.30 zł per liter, and VAT.
Reporting Obligations for Market Players
The regulation requires key market players to provide daily information to the Ministry of Energy for ongoing rate updates.
Publication and Effective Date of Maximum Prices
The maximum price will be announced by the Minister of Energy in an official announcement 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.
Temporary Excise Duty Reduction
An amendment to the excise tax act will allow for a temporary reduction in excise duties on fuels until June 30th, specifically for diesel and gasoline.
Financial Impact of the Measures
The Ministry of Finance estimates that the excise duty reduction will cost the budget 700 million złoty per month, while the VAT reduction will cost 900 million złoty per month.
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