New excise tax on cars

The Ministry of Finance announced on Wednesday that it would increase the tax rate on auto imports, in the process raising as much as PLN 700 million, according to Rzeczpospolita. The new tax rate will affect all vehicles up to 3.5 metric tons and, according to industry experts, will hit older imports more heavily, as the amount of excise tax paid will be commensurate with each automobile’s engine size and the year in which it was manufactured.

One of the aims of the new proposal is to decrease carbon dioxide emissions in Poland, which are currently a concern given Poland’s ratification of the Paris UN Climate Conference Agreement. “The first draft (of the law) is to avoid penalizing younger cars, while at the same time limit the influx of old cars with large engines,” according to James Farysia, president of the Polish Automotive Industry Association. The draft, prepared by the Ministry of Finance in October, will go to the Senate committee in mid-November for review.

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