Poland: Government adopts 2026 budget law, increases corporate tax for banks

The draft 2026 budget law increases the corporate tax rate for the banking sector, a rise in the VAT exemption threshold from PLN 200,000 to PLN 240,000, and a 15% hike in excise rates on alcoholic beverages.

Poland’s government has adopted the draft Budget Law for 2026, on 28 August 2025, which included key fiscal changes. It includes an increase in the corporate tax rate for the banking sector, a rise in the VAT exemption threshold from PLN 200,000 to PLN 240,000, and a 15% hike in excise rates on alcoholic beverages.

On  29 August 2025, the government submitted the draft 2026 budget bill for the Social Dialogue Council, allowing the employee and employer representatives to review and provide their input on the proposed budget.

The draft 2026 budget bill projects revenues of PLN 647 billion, expenditures of PLN 918.9 billion, and a deficit of PLN 271.7 billion (6.5% of GDP). The GDP is forecasted to grow by 3.5% in real terms.

Corporate tax increases for banks

The draft 2026 budget law includes an increase in the corporate tax rate for banks from 19% to 23%, effective in 2028. The bill also includes a proposed decrease in the “bank tax” on certain financial institutions.

This follows after Poland’s Ministry of Finance announced plans to adjust the corporate income tax rate for banks, with a target rate of 23% starting in 2028, up from the current 19%, on 21 August 2025.

Value added tax (VAT)

The 2026 budget includes an increased exemption threshold from PLN 200,000 to PLN 240,000 and the introduction of the National e-Invoicing System (KSeF) for B2B and B2G transactions, excluding B2C.

Excise tax

Starting in 2026, the government will implement higher excise duty rates on various products, which will impact tax revenues. Ethyl alcohol, beer, wine, fermented beverages, and intermediate products will see a 15% increase, while cigarettes, novel tobacco products (vapes), cigars, and cigarillos will face a 20% hike. Smoking tobacco will incur a 30% rise, and e-cigarette liquid will experience the steepest increase at 50%.