The Polish government decided that the excise tax on alcohol and tobacco products in Poland will be increased by 10 percent from the year 2020.
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The Prime Minister’s office has reported that the tax increase will add an extra PLN 1.7 bn (EUR 400 mln) to the state budget.
In September, when the draft of the budget was adopted by the government, the increase of excise was only three percent.
The Polish Business Center Club (BCC) commented that the decision would have a detrimental effect on alcohol and tobacco sectors.
“Such a drastically high hike, without consultation with the tobacco sector, will negatively impact the legal market of tobacco products in Poland,” BCC wrote in a statement.
“We are absolutely convinced that the consequence will be a renewed and intensive development of the grey zone, which state services have, with great effort managed to limit in recent years (to 9.4 percent from 19 percent in 2015),” the statement reads.
Moreover, the Club pointed out that there had been no consultation on the amendment to the excise law, as a result the tobacco sector had had no opportunity to express its opinion.