Excise tax will only affect large and old cars – PZPM

The head of Poland’s Automotive Industry Association (PZPM) appeared to be attempting to quell concerns that the new excise tax on automobiles will bring disruptive changes, Faryś Jakub told Polish Radio in an interview on Monday. “In the case of most imported cars with a capacity of two liters and not older than 10 years, the rates are to remain at a similar level as today,” he said. What’s more, Jakub noted that the changes, which will enter into force on January 1, 2017, will be consistent with those already introduced in 20 other EU Member States, adding that cars which have engines larger than the average would have a slightly higher excise tax than the average. “Those vehicles which have very large engines, above 4 liters, and are between 15 and 17 years old will be taxed considerably higher,” he explained. The increase in tax directly coincides with vehicles of an advanced age. It is estimated that the state budget currently loses PLN 400 million per year as a result of registration of cars abroad, or due to paying lower than the required amount of excise tax. Currently, the excise rate depends on engine size and the declared value of the imported vehicle.