From Nov. 2013 changes in natural gas excise tax

The Ministry of Finance is currently working on a new draft law which involves changes in the calculation of excise duty on natural gas starting fall 2013.

Natural gas excise tax is an integral part of EU law. While joining EU, Poland, in order to carry out necessary adjustments of that tax, was granted a transition period , which in fact expires in October this year. The draft law published by the Ministry of Finance assumes that 1000m³ with a high methane concentration has a caloric value of 31 GJ.

In this case, there will be an excise tax rate to be charged at 40,00 PLN per unit. Furthermore, the tax will initially apply only to selected industrial companies. The households as well as the natural gas itself – a crucial fuel for electricity production – are not going to be burdened with the excise tax. The same rule will apply to public institutions such as town councils, schools, health clinics, etc, which at the beginning are equally to be exempted from the excise tax. Accordingly, chemistry and metallurgy plants and other heavy energy users as well as the agricultural producers and railway companies may become exempted from excise tax.

However, this excise tax exemption maybe regulations will depend on rather complicated price index, which in turn is determined by current quotations on the natural gas stock exchange.