Troubled spirit producers find that their income may soon barely cover taxes

In the first half of 2000, the combined revenues of all 18 Polish spirits producers (Polmoses) reached zl.1.93 billion. Of that zl.1.51 bilion went to the state treasury as excise duty, indicating that they may soon face serious trouble since their income may barely cover their taxes. The Polmoses have no better prospects for this year either, as beginning 2001 they will share the cost of printing excise labels and in February excise duty on alcohol increases by 4%. According to the Finance Ministry, this will result in a price increase of zl.0.63 per bottle. According to the Polmoses the total cost increase, together with VAT, will be an even zl.1, that is at least 7%. Thus the situation of the spirits producers could turn disastrous, as their sales fell from 32.5 million liters in 1999 to 27.2 million liters in the first six months of 2000. Some of the smaller Polmoses are already selling their products at dumping prices, and according to regulations, they should go into receivership. Among those in gravest danger are Polmoses in Sieradz, Krakow, Lodz, Szczecin, and Warsaw 's Koneser. (Puls Biznesu, p.9) J.K.