The package includes sharp, phased adjustments to corporate income tax rates—most notably for banks—as well as new VAT assumptions tied to higher consumption and structural reforms. Significant excise duty increases across tobacco, alcohol, and e-liquid products further underscore the government’s revenue-raising strategy, building on earlier legislation that raised the CIT rate for financial institutions.
Poland’s Ministry of Finance announced, on 5 December 2025, that the lower chamber of parliament (Sejm) had adopted the Budget Act for 2026, introducing wide-ranging tax changes set to reshape the country’s fiscal landscape next year.
The package includes sharp, phased adjustments to corporate income tax rates—most notably for banks—as well as new VAT assumptions tied to higher consumption and structural reforms. Significant excise duty increases across tobacco, alcohol, and e-liquid products further underscore the government’s revenue-raising strategy, building on earlier legislation that raised the CIT rate for financial institutions.
Corporate Income Tax
The most notable law approved was the increase in the corporate income tax rate for banks, initially passed by the Sejm last month and later amended by the Senate. Under the change, the current 19% CIT rate for banks will jump to 30% next year, then gradually decrease to 26% in 2027 and 23% in 2028, where it will stay going forward.
Similarly, the reduced corporate tax rate will jump from 9% to 20% in 2026, before being lowered to 16% in 2027 and 13% in 2028 and beyond.
VAT
Projected VAT revenues are expected to reach PLN 341.5 billion, based on factors such as a 6.4% nominal rise in private consumption and several 2026 system changes, including raising the subjective VAT exemption threshold from PLN 200,000 to PLN 240,000 and the implementation of the KSeF for VAT-taxable activities in Poland.
Excise Tax
- Starting 1 January 2026, excise tax rates will rise significantly across several product categories, including a 20% increase for cigarettes, a 30% increase for cigars and cigarillos, a 30% increase for smoking tobacco, and a substantial 50% hike on e-liquid used in e-cigarettes.
- A 15% rate increase on ethyl alcohol, beer, wine, fermented beverages, and intermediate products will influence revenue.
- Revenues will also reflect the taxation of new excise products introduced under the roadmap starting 1 August 2025, through 2027.
Earlier, Poland published the “Act of 6 November 2025 amending the Corporate Income Tax Act and the Act on the Tax on Certain Financial Institutions”, in the Official Gazette on 28 November 2025, raising the corporate income tax rate for banks.
