On 2 October 2026, the Polish Government announced the launch of the next phase of the “Ceny Paliw Niskie” (CPN) program, extending temporary reductions in fuel prices at the pump through targeted excise duty relief and subsidies to fuel distributors. The measure, authorized under the Special Solutions Act related to the protection of consumers against the effects of the war in Ukraine, reduces the effective excise rate on petrol and diesel to the EU minimum levels permitted under the Energy Taxation Directive (2003/96/EC). The program also maintains the VAT rate on fuels at the reduced 8% level (down from the standard 23%). The estimated fiscal cost of this phase is PLN 3.2 billion for the remainder of 2026, financed from the state budget reserve. The Prime Minister stated the program aims to mitigate inflationary pressures on households and the transport sector.
Key Takeaways
- Excise Duty Alignment: The reduction brings Polish excise rates on motor fuels to the EU minima (EUR 359 per 1000 liters for petrol, EUR 330 for diesel), requiring a formal notification to the European Commission under the Energy Taxation Directive. The measure is temporary and subject to review by 31 December 2026.
- VAT Revenue Impact: The reduced 8% VAT rate on fuels significantly lowers VAT revenue from the sector. Businesses in the fuel supply chain must correctly apply the reduced rate in their JPK_VAT filings and ensure proper invoicing. The KAS will monitor for potential abuse, such as misclassification of fuel types.
- Budgetary Trade-offs: While the program provides immediate relief to consumers, it creates a structural deficit in the excise and VAT revenue streams. The Ministry of Finance has indicated that the lost revenue will be offset by improved tax compliance yields from the KAS’s enhanced audit programs and the sealing of the VAT system under the recently adopted tax package.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement