Government Adopting Further Changes to the Excise Tax

The Council of Ministers adopted the draft act amending the act on excise duty and certain other acts, submitted by the Minister of Finance. The changes are supposed to make life easier for entrepreneurs.

What are Major Changes in Excise Tax:

On October 25, the Council of Ministers adopted a draft amendment to the Excise Tax Act. A number of solutions have been adopted to make life easier for entrepreneurs but also to lower energy prices. “The draft clarifies the provisions on excise duty. The new solutions will reduce administrative obligations and make it easier for entrepreneurs to run a business. There will also be simplifications for entities that produce electricity from renewable energy sources, ” reads the communiqué after the meeting of the Council of Ministers.

Interestingly, the solutions adopted today include provisions that indicate the development of both the desire to ease the producers of energy from renewable sources and people who decide to buy hybrid cars. This means a shift towards more ecological solutions.

There will be simplifications for entities producing electricity from renewable energy sources (RES). Administrative obligations for entities that consume electricity exempt from excise duty, produced in generators with a total capacity not exceeding 1 MW, will be reduced. This solution will also apply to local government units.

Until December 31, 2029, the excise tax exemption will be extended for plug-in hybrid passenger cars with an internal combustion engine capacity of no more than 2,000 cm³. Until now, this exemption was valid until the end of 2022.