Poland has slashed VAT and excise duties on motor fuels in response to soaring prices caused by Middle East tensions, with the temporary measures set to cost the government over PLN 1.3 billion.

RF Report

Poland’s Ministry of Finance has introduced emergency tax relief measures on 31 March 2026 to offset surging fuel costs triggered by the escalating conflict in the Middle East.

The Finance and Economy Ministry announced a temporary VAT reduction on motor fuels from 23% to 8%, effective from 31 March 2026 through 30 April 2026.

Alongside the VAT cut, excise duties have been lowered to the minimum levels allowed under European Union regulations. Excise tax is being dropped to PLN 0.29 per litre for gasoline and PLN 0.28 per litre for diesel fuel from 30 March to 15 April 2026.

The combined fiscal impact is significant: the VAT reduction will cost approximately PLN 930 million, while the excise tax cuts add another PLN 400 million to the budget.