Tax debate concerning Polish cider
Cider and drinks that use the surplus of Polish fruit are taxed higher than beer. That is why the Polish Wine Council and cider producers want to abolish excise duty on these products. The Ministry of Agriculture supports the producers' demands. The Ministry of Finance responds that both cider and perry currently receive preferential tax treatment.
Cider problems
Lack of advertising opportunities, excise tax - these are currently the biggest problems of Polish cider producers, which they have been struggling with and about which they have been raising alarms for several years. Legal regulations favoring beer promote intense competition from breweries. The domestic market is literally "flooded" with cider-like products. And these are offered by some breweries, cleverly taking advantage of the global cider trend. Original cider, in such conditions, has basically no chance.
Cider is an alcoholic drink with an alcohol content of 1.2-8.5%. It is produced by yeast-led alcoholic fermentation from a batch in which the main ingredient is apple juice. The apple is a Polish national treasure. Poland is the largest producer of these fruits in the European Union. Polish ciders are characterized by a higher proportion of fruit (i.e. apple juice) than ciders produced in the vast majority of European countries - producers are obliged to do so by the regulations established in Poland.
– Countries where grapes are a strategic raw material have introduced a zero excise tax rate on wine. This happened in Germany, Italy, Spain and Romania. In Poland, however, we do not care about our wealth, i.e. apples. We should zero the excise tax on cider, thus increasing its production, which will translate into the use of apples and provide security for Polish fruit growers. This move brings benefits for many sectors. After all, we must think strategically and protect Polish interests. This is clearly visible especially today, in the face of Polish farmers' problems related to grain from Ukraine - says Jakub Nowak, producer of Cider Dobroński.
Cider argue between ministries
Minister of Agriculture and Rural Development Czesław Siekierski wants to completely abolish excise duty on ciders and perry. In turn, Deputy Minister of Finance Jarosław Neneman pointed out that the excise tax applicable to wine and other alcoholic products is not high - approximately PLN 1.5 per bottle. He added that small wineries benefit from 50%. reliefs in this tax. However, cider and perry are currently treated preferentially; this tax has not been increased for several years - he noted. He emphasized that excise duty constitutes "several percent" of the price of a bottle of cider, so it is not a key factor for this industry.
Producers do not agree with this thesis:
- Cider is a natural, low-proof product. Most often produced with an alcohol strength of up to 5%, so often with a much lower alcohol content than, for example, beer. The production of cider is three times more expensive than the production of beer itself. - says Grzegorz Bartol, producer of Cider Sadowski.
Russian Embargo on apples
Since Russia imposed an embargo on Polish apples in 2014, the apple purchase market has been systematically shrinking. – A zero excise tax rate would reduce cider prices in stores. Lowering prices will result in greater demand for apples themselves, which in turn would help Polish farmers to liquidate too large inventories. – explains Grzegorz Bartol.
- A zero excise tax rate on cider would give an impulse to the development of Polish producers. [...] In our country, about 6 million liters of cider are produced annually. Beer production in Poland is approximately 40 million hectoliters. The data show the gap between products, but they illustrate the potential for the development of Polish apples.- explains Bartol.
Last year, income from grape wine, fruit wine, cider and perry amounted to PLN 509 million and was similar to the level of income from the previous year (PLN 507.2 million).
Source: PAP / TVN24 / Przegląd Gastronomiczny