Poland confronts tax competition in orchard services and proposes higher sin taxes

Polish orchard service firms that pay ZUS contributions, VAT and other taxes face competition from unregistered providers who can offer lower hourly rates. The cost disparity creates tension and accusations of unfair competition, prompting calls for tax simplification and lower rates to encourage legal registration.

The government is also weighing a four‑fold increase in the levy on small‑volume alcoholic drinks, raising the fee from 25 zł to 100 zł per litre of 100 % alcohol sold in bottles under 300 ml. Alongside this, the sugar tax is set to rise, with the fixed charge increasing from 0.50 zł to 0.70 zł per litre and an additional 0.10 zł per gram of sugar above 5 g per 100 ml. Officials estimate the new alcohol levy could generate about 300 million zł, while the sugar tax could bring in roughly 1.5 billion zł, though previous audits have questioned the earmarking of these funds.