Spirit taxes to be re-evaluated in attempt to reduce losses from smuggling

The Finance Ministry has said that the government will investigate the possibility of lowering the excise tax on spirits. Poland's biggest producer of spirits, Polmos, who are lobbying for lower taxes, believe that such a decision would benefit the state budget which is losing over zl. 2.5 billion a year through alcohol smuggling. Polmos maintains that lower excise tax would mean increased revenues of up to zl. 917 million. A preliminary analysis prepared by the National Spirit Processing Council (KRPS) said that lowering excise by 30% would mean that the income of the State Treasury would fall by zl. 373.3 million in the first six months, but then after another six months, revenue would increase steadily. However, no change in excise duties can be expected soon, as the law has to be changed and decisions made as to what to do with alcohol produced before the changes. (Puls Biznesu, p. 9) A.D.