Lower house passes bill that lowers excise tax on energy

Tomasz Gzell/PAP

The bill, which reduces the excise tax on electricity and fuel, was passed by the Sejm on Thursday.

The legislation is part of the Polish government's so called anti-inflation shield.

There were 436 votes in favor of the bill, one against and one abstention.

The bill introduces an exemption from excise tax on electricity sold to households from January 1 to May 31, 2022 and a reduction in the tax rate for other recipients.

It also provides for a reduction in excise tax rates on fuels in the period December 20-31, this year, and from January 1 to May 31, 2022.

Due to EU regulations, there is a requirement to increase excise tax rates at the beginning of the year but, nonetheless, they will be lower than the current rates.

In addition, the bill, if passed, will temporarily (from January 1 to May 31, 2022) exclude fuel sales from a retail sales tax.

According to a Regulatory Impact Assessment, the proposed changes may cost the budget more than PLN 1.5 billion (EUR 326 million).

The bill will now go to the Senate.

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