Transcript Excise tax rates on energy carriers in Poland 2004 (1EUR=4,44PLN)

The state and perspectives of
green budget reform in Poland
Michał Dybiec
Andrzej Kassenberg
Wojciech Stodulski
Institute for Sustainable Development
Warsaw, Poland
International Conference
Environmentally harmful subsidies and ways to eliminate them
2-3 September 2004, Budapest
Basic macroeconomic indices in Poland 2001-2004
Specification
(current rate 1USD=3,67PLN)
Real processes
GDP
Exports
Imports
Consumption
Unit
2001
2002
2003
2004
forecast
%
%
%
%
101,0
103,1
94,7
101,7
101,4
104,8
102,6
102,7
103,8
114,7
109,3
102,5
105,0
108,7
108,5
103,3
Gross capital formation
GDP in current prices
Prices
Price indices of goods and services
Wages and salaries
Av.monthly gross salaries
Av.montlhy gross retirement pay
Labour market
Unemployment rate
Interest rates
Open market operations
Balance of payments
Current account
FDI
%
PLN bln
87,4
760,6
93,2
781,1
102,0
814,7
112,0
861,5
%
105,5
101,9
100,8
102,0
PLN
PLN
2045
972
2098
1039
2201
1092
2290
1126
%
17,5
18,1
20,0
19,5
%
15,9
8,75
5,25
3,7
US mln
US mln
-7166
6928
-6700
3789
-4018
3702
-8400
5150
State Budget 2002-2004 Incomes
(billions PLN)
REVENUE TOTAL
1.Tax revenue
1.1 Indirect taxes
1.1.1 VAT
1.1.2 Excise tax, of which on:
a) spirits
b) motor fuels
c) tobacco products
d) beer
e) electricity
f) other
1.1.3. Tax on games of chance/mutual betting
1.2.Income tax, of which on:
1.2.1 Corporate income tax
1.2.2 Personal income tax
2.Non-tax revenue
3.Foreign revenue
4.Compensation from the EU budget
2002
performed
143,6
128,8
89,6
57,4
31,5
3,9
13,8
7,9
2,1
1,6
2,2
0,7
2003
performed
152,1
135,3
95,4
60,4
34,4
4,1
14,8
8,4
2,2
2,5
2,4
0,7
2004
planned
152,7
135,0
103,1
67,6
34,6
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
0,9
15,0
24,1
14,3
0,5
x
14,1
25,7
16,7
0,1
x
10,3
21,6
15,1
0,1
2,5
State budget 2003 – tax revenues
14,6%
33,2%
21,5%
11,8%
1,3% 1,2% 4,6%
1,4%
VAT
motor fuels
beer
other excise tax
personal income tax
8,1%
2,3%
spirits
tobacco products
electricity
corporate income tax
other revenues
State Budget 2002-2004 Expenditures
(billions PLN)
EXPENDITURES TOTAL
1.Allocation of subsidies, of which:
1.1 Subjective allocations
1.2 Allocation to objective funds:
1.2.1 Social Insurance Fund
1.2.2 Pension Fund
1.2.3 Labour Fund
1.3 Apprioprate allocations to selfgovernment
1.4 General subsidies for local selfgovernment
2.Benefits for natural persons
3.Current expenditure of budgetary
entites of which:
3.1 Wages and salaries
4.Public debt servicing
4.1 Domestic
4.2 Foreign
2002
performed
182,9
104,4
11,8
47,4
27,1
15,4
3,6
13,9
2003
2004 planned
performed
191,9
198,3
100,4
95,6
12,5
12,7
51,5
41,5
30,8
20,1
15,0
15,1
3,9
3,1
9,9
5,8
29,7
32,0
31,1
15,1
29,8
16,4
34,6
17,6
40,3
17,7
24,0
20,3
3,7
18,8
24,1
20,4
3,7
22,9
26,8
21,0
5,8
Environmental investment in Poland
2
8
1,5
6
1
4
0,5
2
0
0
1997
1998
1999
Investment
2000
2001
GDP share
2002
% of GDP
billion PLN (current
prices)
10
EFR in Poland pros and cons
PROS
CONS
• High GDP growth
• High unemployment
• Needs for extra funds for
implementation of EU-law
• High costs of labour
• High extent of subsidisation
• Low level of costs
internalization
• Low level of innovation in
the economy
• High budget deficit
• High public debt servicing
• High budget allocations to
Social Insurance Fund and
Pension Fund
• Relative small share of
revenues from excise tax in
the state budget
• Relative small impact on
labour market
• Economic weakness of
enterprises and households
Selected tendencies in relation to EFR
and harmful subsidies
 Transport
 Excise tax removal – new registration fees.
 Vignette removal
 Coal mining
 Energy
Harmful subsidies – coal mining
 In the 90s – direct subsidies and debt
forgiveness of 34 billions PLN (in real prices of
2001– av. yearly total state aid ca. 11 bio.)
 Restructuring programme for 2004-10 :
subsidies of almost 10 billions PLN.
 Unknown extent of hidden subsidies:
organizational structure of the sector.
 Financial results of coal companies vs. rationale
for state aid.
Harmful subsidies – energy
 Main area of concern – long-term contracts
(KDT).
 Underwritten between Polish Power Grid and
energy companies.
 Partly for restructuring and modernization
programmes.
 Today 40% of domestic energy production under
KDT.
 25 billions PLN for contracts removal.
 NAP – 35% more emission allowed than
resulting from approved Climate Policy
Excise tax rates on energy carriers in
Poland 2004 (1EUR=4,44PLN)
Specification
Unit
Tax rate (PLN)
Gasoline 94, 98 and their basic petrol 1000 l
1690
Unleaded petrol
1000 l
1464
Motor oil, of which those with
1000 l
1141
sulphur content
- more than 0,005% up to 0,035%
1000 l
1063
- up to 0,005%
1000 l
1014
Aircraft fuels for jet turbin engines
1000 l
1037
Aircraft fuels for pistone engines
1000 l
1762
Heating oils
1000 l
197
LPG for cars
1000 kg
630
Electricity
MWh
20
Excise tax – hidden subsidies
 Natural gas – could be excluded from
excise tax up to 2013.
 Coal – 50% of excise tax rate to be
reached up to 2007, 100% up to 2010.
 Diesel fuel – full tax rate to be reached
before 2011.
 No excise tax for heavy heating oil and
coke.
VAT – hidden subsidies
 Basic VAT rate – 22%
 Good and services on which preferential rate
3% is imposed (up to 30.04.2008)





Nitrogen fertilizers
Phosphorus fertilizers
Potassium fertilizers
Pesticides and other agrochemicals
Wood extraction services
 Services on which preferential rate 7% is
imposed
 Taxi services
 Passenger road transport services
 Air travels
ISD’s activity on ETR/EFR
• 1996 two international conferences for
environmental NGO from CEE
• 2000-2002 project on ETR with secenarios
development
• From 2000 particpation in EEB campaign
• 2003 – international conference with World Bank
• 2002-2004 – two projects with Clean Air Action
Group (REC, Hungarian Access)
--------------------------------------------------------------Small groups of scientist work on ETR/EFR in
Warsaw University and Cracow School of
Economics
Scenarios for EFR in Poland conclusions
 Double dividend (positive results for
environment and employment) is very difficult
to project and achieve.
 The impact of tax reform on inflation and
increase of production costs is not significant –
real prices of majority of goods will not change.
 Welfare of households should not decrease.
 Supportive role of EFR for the system of
environmental fees in Poland.
Who is for, who is against
•
•
•
•
•
FOR
Ministry of Environment
Environmental NGOs
Some environmental
economists
Greens 2004
Environmental investment
market
POTENTIALLY FOR
• Biofuel and Renewable
Energy producers
• Public transport sector
AGAINST
• Ministry of Economy and
Labour
• Ministry of Finan
• Energy and mining sector
•
•
•
•
•
UNCONVINCED
Env.
Commission
in
Parliament
Some bussines organisations
Some environmental experts
Trade Unions
Regional and local selfgovernment
Next steps
• Establishing the Polish-German
committee for implementation of EFR
• Debate in parliamentary environmental
commission on EFR
• Polish-German workshop on subsidies
harmful to the environment (generally
and in energy sector)
Thank you for your attention
Institute for Sustainable Development
Web: www.ine-isd.org.pl
E-mail: [email protected]
[email protected]
[email protected]