Poland opposed EU tax rule for electricity — RMF24
At a meeting of European Union energy ministers in Luxembourg, Poland opposed a European Commission proposal under which electricity should not be taxed more heavily than natural gas. The initiative is part of a draft regulation which, according to the European Commission, is intended to help reduce energy bills and cut Europe’s dependence on imported fuel.
Poland’s objections
Poland’s Deputy Energy Minister Wojciech Wrochna said that the taxation provision should not be included in this regulation. Warsaw insists that decisions on tax matters should continue to be made unanimously by member states. The Polish side refers to the fact that EU treaties provide for the principle of unanimity in taxation matters.
The dispute concerns Article 18c of the draft regulation. In addition to Poland, Sweden, Italy, Finland and Bulgaria voiced similar reservations, RMF24 reports.
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European Commission’s arguments
The European Commission proposes that countries set excise duty rates so that the tax burden on electricity does not exceed the burden on gas. Brussels stresses that this is not about introducing a single tax rate for all EU states, but about a common principle governing the ratio of taxation on the two energy sources.
According to data obtained by an RMF FM journalist from the European Commission, taxes and charges account for 36% of the price of electricity for Polish businesses — the highest figure in the EU. Adoption of the proposal would mean changing Poland’s current rules on excise taxation of electricity and gas.
Wojciech Wrochna also said that the regulation itself would not solve the problem of high bills. Poland is seeking a broader discussion of the causes of high energy prices, including CO₂ emissions costs and the ETS emissions trading system. According to RMF24, a new compromise text, from which the disputed provision may be removed, is planned to be discussed on November 10.
