A temporary reduction in the excise tax on energy products will not combat the further increase in inflation, assessed the organization of the Business Center Club (BCC). Tax changes are part of the so-called anti-inflationary shield. The BCC defined the obligation to place information about the introduced reductions at the checkout at the petrol station as an “unusual element of the amendment”.
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It is about the act amending the act on excise duty and some other acts. The Sejm passed the act last Thursday, now it will be the subject of work in the Senate. The next meeting of the upper house will start on Tuesday, December 14. The regulations are part of the so-called anti-inflationary shield.
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Anti-inflationary shield
BCC pointed out that the amendment will have a significant impact on the national budget in 2022 and partially in 2021. “The cost for the budget of introducing excise tax cuts is lower by about PLN 1.327 billion (excise tax together with VAT),” we read.
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The act provides for an exemption from excise duty on electricity sold to households from 1 January to 31 May 2022 and a reduction in the rate of this tax for other consumers. It also provides for a reduction in excise duty rates on fuels in the period from December 20 to December 31 this year and from January 1 to May 31, 2022. In addition, the act temporarily (from January 1 to May 31, 2022) excludes fuel sales from taxation with the retail sales tax.
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The organization assessed that, in general, the act seems to be beneficial to the average consumer or entrepreneur, as – in principle – temporary reductions in excise tax on the motor fuels in question are to slow down the growth of fuel prices at stations, and thus also help in the fight against inflation. “Fuel prices also translate into the costs of supplying various goods, including food, and therefore a temporary slowdown in fuel price increases may translate into lower prices not only at gas stations, but also in grocery stores” – it was noted.
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Inflation in Poland. The reasons
The organization drew attention to the justification attached to the project, which shows that “the increase in energy commodity prices in the world markets is the main reason for the increase in inflation in Poland and other EU countries”. “It is difficult to agree with this statement. It is undisputed that the increase in energy commodity prices in the world markets translates into the prices of goods. After all, an increase in fuel prices causes an increase in production costs and, consequently, an increase in prices paid by the consumer. Inflation itself is a much broader concept, however. . Inflation means an increase in prices, and thus a decrease in the purchasing power of money “- underlined. The BBC pointed out that rising energy commodity prices are not the only cause of rising inflation in Poland. The price increase does not only affect the energy sector.
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The organization indicated that inflation was also influenced by, inter alia, increasing the money supply by issuing them by the National Bank of Poland, too low interest rates and no reaction to the first symptoms of inflation a few months before the first interest rate hike.
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“Translating inflation only by an increase in energy commodity prices in the world markets is an incomplete picture of the functioning of the Polish economy, and a temporary reduction in the excise tax on energy products will not combat its further growth” – emphasized BCC.
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According to preliminary data of the Central Statistical Office, inflation in November increased by 7.7 percent year on year. This is the highest level since December 2000, when inflation was 8.5 percent year on year.
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PAP / Maciej Zieliński
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Fuel prices. Information about discounts at checkout
The Act also stipulates that end-users of fuel and electricity will be obliged to clearly inform customers about the introduced reductions.
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According to BCC, “the introduction is a unique element of the amendment an order to post at the cash register at the premises of the enterprise where motor fuels are sold, clear information about the reduction of excise duty on motor fuels and the fact that these fuels are not subject to tax on retail sales “.
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“The project of such information is to be announced by the Council of Ministers by way of an announcement. Such a solution has not been used in Poland since the times of the Polish People’s Republic,” he assessed.
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BCC is an organization associating individual employers. It has existed since 1991. According to the information available on her website, club members employ over 400,000 people. employees, the revenues of companies exceed PLN 200 billion, and the headquarters are located in nearly 250 cities.
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photo-source">Main photo source: DarSzach / Shutterstock.com
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