Poland ends temporary fuel excise tax cut while keeping lower VAT

Poland will not extend the reduced excise duties on gasoline and diesel that were introduced in March. From 15 June the excise rates return to their standard level, ending the 29 gr per litre cut on gasoline and the 28 gr per litre cut on diesel.

The reduced VAT rate on selected motor fuels remains at 8% (down from 23%) until 30 June, and the daily maximum price mechanism set by the energy minister continues to apply as long as the lower VAT is in force. The "Ceny Paliwa Niżej" programme, launched in late March to curb fuel price spikes, cost the state budget about 700 million PLN per month for the excise cut and about 900 million PLN per month for the VAT reduction, roughly 1.6 billion PLN monthly.

A source close to the Ministry of Finance confirmed that no further regulation will be issued to prolong the excise reduction, signalling the end of that element of the programme.