Poland: Extension of excise tax exemption for plug-in electric vehicles and anti-inflation measures
Legislation considered by the Council of Ministers
Legislation considered by the Council of Ministers
Legislation considered by the Council of Ministers would extend an excise tax (duty) exemption for plug-in electric vehicles and extend anti-inflation measures.
Excise tax exemption for plug-in electric vehicles
A draft bill that would amend the excise duty law and certain other laws was added to the list of legislative work and policies of the Council of Ministers. The main purpose of the bill is to extend the existing period of an excise tax exemption for passenger vehicles utilizing an external source of electricity, with engine cubic capacity not exceeding 2000 cm³ (commonly referred to as plug-in electric vehicles) until 31 December 2029. The bill also provides technical changes.
Anti-inflation measures
The Council of the Ministers also adopted a draft bill amending the corporate income tax law and certain other laws to extend the operation of anti-inflation measures (commonly referred to as the “anti-inflation shield”) from 31 October 2022 to 31 December 2022.
- Reduced value added tax (VAT) rates on food, motor fuels, natural gas, electricity, heat, fertilizers and other measures supporting agricultural productions will remain in effect until 31 December 2022.
- The bill reduces excise tax rates on electricity, certain motor fuels, and light fuel oil to the minimum rates provided for by the EU regulations.
The Deputy Minister of Finance announced that although the conditions for lowering VAT rates to the amount from before 2011 have already been met, as long as defence spending exceeds 3% of gross domestic product (GDP), VAT rates need to remain at the level of 8% and 23%.
Read an August 2022 report prepared by the KPMG member firm in Poland
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