Finance Ministry hopes cut in duties will deal fatal blow to alcohol smuggling

The Finance Ministry, as part of the fight against smuggling and illegal sales of alcohol, decided to lower excise duty on spirits. The tax will be reduced by 30% in 2003 to zl. 4,400 per hectoliter of pure alcohol. According to the ministry's projections, the state will initially lose about zl. 1 billion, but will regain these revenues within a few years thanks to increased sales of legal alcohol. Currently, the annual turnover on the black market is estimated at 35 million liters of pure alcohol - which is over one third of all sales. Furthermore, the ministry pointed out that at present Polish excise tax is much higher than in the EU, which would make it difficult for domestic producers to compete against their Western counterpartners upon accession to the Fifteen. (Puls Biznesu, pp. 1, 12) M.K.