We reported on the Ministry of Finance’s plans to raise alcohol excise tax on FXMAG. Now representatives of the Polish Brewers' Employers Association have weighed in, pointing to the consequences of such a decision.
Lower production and employee layoffs
The finance ministry is considering raising excise tax on ethyl alcohol, beer, wine, fermented drinks and intermediate products. The change would take effect from 2027, with an increase of 15%. This is a very risky decision that could bring unwanted consequences, the representatives of the Polish Brewers' Employers Association say, and they urge the government to abandon the idea.
“We estimate that the additional drop in beer sales due to the planned excise tax increase will be about 5%. We also estimate further market decline due to consumer and demographic trends and a drop resulting from the introduction of a deposit system, which combined with the above loss could lead to a double-digit market shrinkage in 2026,” wrote the Polish Brewers' Employers Association in an opinion on the draft law prepared by the finance ministry.
Breweries say that higher excise could not only reduce production but directly lead to the need to cut jobs in brewing campaigns.
“From the mentioned 85,000 jobs another several thousand people could be lost due to these changes,” the association’s representatives point out.
More voices of opposition
The Polish Brewers' Employers Association is not the only institution criticizing the Ministry of Finance’s idea of raising alcohol excise tax. There is no unanimity in the government. The Ministry of Agriculture and Rural Development firmly says no to such a solution.
As the agriculture ministry points out, crops such as barley, rye, wheat, potatoes or corn are used to produce alcohol. “Drastic changes in the level of excise tax rates for 2027 before the end of the aforementioned excise roadmap (planned until the end of 2027) undoubtedly contribute to a loss of trust among entrepreneurs regarding legal certainty,” the agriculture ministry notes in its comments on the Ministry of Finance’s proposal.
Representatives of the Ministry of Agriculture point out that raising excise will reduce demand, which will directly translate into lower demand for agricultural products. The ministry adds that this will directly hit Polish agriculture, which has been struggling with many problems for years.
“This decline will, however, affect the reduction of alcoholic beverage production, lowering the use of agricultural crops by Polish farmers for alcoholic beverage production, especially grains, potatoes, hops, and fruits,” the Ministry of Agriculture and Rural Development argues.
For now, the draft law prepared by the Ministry of Finance has been sent for consultation. Whether the excise level will change will be decided by the parliamentary majority. The vote will take place at one of the autumn parliamentary sessions.
See also: No to higher alcohol excise? The agriculture ministry presents arguments
