The Employers of Poland presented their position to the Ministry of Finance. It points to some controversial issues in the draft assumptions of the Excise Tax Act, which require changes or clarification.
The Ministry of Finance presented assumptions to the draft amendment to the Excise Tax Act meant to reduce some burdensome and unnecessary administrative duties for entities dealing with excise goods.
Many of the proposed assumptions are actually a chance to streamline procedures and reduce inconveniences in doing business. However, some of them in their current form raise entrepreneurs’ doubts.
The Ministry also proposes allowing entities starting operations with the use of coal or gas products to be exempt from excise tax as energy-intensive plants. However, in the explanatory notes it is stated that the exemption would conditional upon submitting a statement on the relevant indicators levels planned in the first year to the competent customs office. The assumption is that if the entity fails to have the indicators as planned it will be required to pay the tax (including interest) on the used coal and gas products on which excise duty has not been paid, which is not acceptable. Contrary to the justification of this postulate, this change would not facilitate operations but constitute a substantial risk.
It is also necessary to reduce and simplify the scope of the data contained in the verification files. Today, it is too detailed and its updating will continue to be a significant administrative burden.
Employers of Poland also call for abolishing the obligation to provide a deposit for excise tax. It should be borne in mind that in the case of the largest manufacturers of cigarettes and tobacco products in Poland its amount will be calculated in relation to billions of zlotys. Hence, the costs of deposits for the largest legally operating companies will amount to a few million zlotys, which will undoubtedly adversely affect the competitiveness of tobacco products manufactured in Poland. In contrast, dishonest entities reporting low turnover of raw tobacco will pay deposits on amounts of only tens or hundreds of zlotys.
The project also stipulates introducing an excise tax exemption for vehicles for medical rescue teams. However, the justification is vague and does not clearly indicate whether this exemption will also include vehicles for rescue teams purchased by private entities. If not, then it will be obvious discrimination. Therefore, the exemption explicitly stipulated in the text of the provision.