Proposal for a COUNCIL IMPLEMENTING DECISION authorising Poland to apply reduced rates of excise duty to heavy fuel oil, natural gas, coal, and coke, used as heating fuels.
Date: 2024-01-15
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: Poland, coal, excise duty, fuel oil, heating, natural gas, tax relief

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   EUROPEAN COMMISSION  Brussels, 15.1.2024  COM(2024) 8 final 2024/0004 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION authorising Poland to apply reduced rates of excise duty to heavy fuel oil, natural gas, coal, and coke, used as heating fuels.  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Taxation  of  energy  products  and  electricity  in  the  European  Union  is  governed  by  Council 
Directive  2003/96/EC  of  27  October  2003  restructuring  the  Community  framework  for  the 
taxation  of  energy  products  and  electricity1  (the  ‘Energy  Taxation  Directive’  or  the 
‘Directive’). 

Pursuant to Article 19(1) of the Directive, in addition to the provisions laid down in particular 
in Articles 5, 15 and 17, the Council, acting unanimously on a proposal from the Commission, 
may authorise any Member State to introduce further exemptions or reductions in the level of 
taxation for specific policy considerations. 

By virtue of Council Implementing Decision (EU) 2023/11972 of 19 June 2023, Poland was 
authorised to apply reduced rates of excise duty to heavy fuel oil, natural gas, coal, and coke, 
used as heating fuels. That authorisation expired on 30 June 2023. 

Poland  is  seeking  for  an  authorisation  to  continue  to  apply  a  temporary  reduction  of  the 
national tax rates for heavy fuel oil, natural gas, coal, and coke, used as heating fuels, below 
the minimum levels of taxation laid down in Article 9 of the Directive and Table C of Annex I 
to the Directive.  

The requested period of validity is limited to 6 months, which is within the maximum period 
allowed by Article 19(2) of the Energy Taxation Directive. 

By a letter dated 30 June 2023, the Polish authorities have informed the Commission that they 
intend to continue to apply the above mentioned temporary measure for a further period of six 
months, with effect from 1 July 2023 to 31 December 2023. The Polish authorities provided 
additional  information  respectively  on  8  September  2023,  as  well  as  on  5  and  13  October 
2023. 

The request for derogation concerns the application of reduced rates of excise duty to heavy 
fuel oil, natural gas, coal, and coke, used as heating fuels.  

The Polish authorities pointed out that the annual update of the minimum rates expressed in 
national currencies for Member States that have not adopted the euro, required on the basis of 
Article  13  of  the  Directive,  in  combination  with  the  temporarily  high  –  and  unfavourable  – 
euro-zloty (EUR/PLN) exchange rate on the first working day of October 2022, would require 
an increase in the levels of taxation applicable to the products concerned3. 

Although the exchange rate of the zloty since then has returned to a more favourable level, the 
rules established by Article 13 do not take that into consideration, and therefore the only way 
for Poland to maintain constant levels of taxation for the energy products concerned would be 
by means of a request for derogation. According to Poland, without this derogation, it would 
be necessary to increase the levels of taxation applicable to those products.  

1 
2 
3 

OJ L 283, 31.10.2003, p. 51-70. 
OJ L 158, 21.6.2023, p. 71. 
The applicable exchange rate for 2023, is of PLN 4.8320 for one euro, while for 2022, it was of PLN 
4.5826, and for 2024 it will be of PLN 4.6123.   

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The objective of the Polish request is to mitigate the negative impact potentially deriving from 
the adjustment under Article 13 of the Energy Taxation Directive, by maintaining the relevant 
national  tax  rates  at  their  current  levels,  below  the  relevant  minimum  taxation  levels  laid 
down  in  the  Directive.  That  would  correspond  to  a  reduction  of  the  national  tax  rates 
expressed in euro compared to the minimum rates, resulting from the difference of EUR/PLN 
exchange  rate  after  annual  adjustment  carried  out  in  accordance  with  Article  13  of  the 
Directive. This maitenance of current national rates would also be applied to other products 
intended for heating purposes within the meaning of Article 2(3) of the same Directive.  

According  to  the  Polish  authorities,  the  social  and  economic  situation  generated  by  high 
inflation as well as rising prices of energy products continue to constitute a serious problem 
for the Polish society.  

Besides the other measures adopted4, Poland highlighted the importance of such a derogation 
due to the negative impact stemming from the sharp increase in energy sales prices, which is 
one of the consequences of the Russian invasion of Ukraine. Along with a rampant inflation, 
the  Polish  authorities  underlined  that  this  situation  directly  affects  both  households  and 
companies.  

In  that  respect,  Poland  specified  that  such  excise  duty  rates  reduction  is  available  to  all 
consumers  purchasing  energy  products  covered  by  the  derogation  request5.  To  this  end,  the 
Polish authorities provided the below chart presenting the overall consumption trend6 of those 
energy products.  

4 

5 

6 

As part of the actions taken in 2022, Poland adopted a legislative  package (the so-called Anti-inflation 
Shield)  designed  to  minimise  the  negative  impact  incurred  by  inflation.  Poland  introduced  in  this 
respect  an  aid  in  the  form  of  reduced  excise  duty  rates  for  certain  motor  fuels,  light  heating  oil  and 
electricity,  reduced  to  the  EU  minima.  This  temporary  package  of  legislation  ceased  to  apply  from  1 
January 2023.  
The  Polish  authorities  also  mentioned  that  Article  15(1)(h)  of  the  Directive  has  been  partially 
implemented into the Polish legislation (i.e. coal products and gas products - falling withing CN codes 
2705  00 00,  2711  11  00, 2711  21 00  and  2711  29  00 - used  for heating  purposes  by households  and 
certain other specific users, are exempted from excise duty). 
According to national estimates, the number of direct beneficiaries has been calculated at approximately 
6100  taxpayers  in  Poland,  mainly  entrepreneurs  (including  almost  5600  taxable  persons  submitting 
declarations for coal products).  
Data 
that 
https://stat.gov.pl/wyszukiwarka/?query=tag:zu%C5%BCycie+w%C4%99gla+kamiennego).  

Statistical 

extracted 

Central 

Office 

effect: 

from 

(see 

the 

to 

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Chart 1 – Consumption of the energy products (2006-2021)7 

Coal  

Natural gas  

Heavy fuel oil  

Year 

(in thousands of tons) 

2006 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

2021 

83.483 

84.230 

80.323 

73.842 

81.979 

79.108 

75.165 

77.300 

72.768 

72.283 

74.176 

74.637 

74.232 

68.302 

62.404 

69.621 

(TJ) 

493.544 

499.571 

505.922 

488.179 

519.923 

515.162 

552.579 

560.164 

542.598 

553.964 

592.114 

628.517 

660.336 

691.543 

694.653 

741.000 

(in thousands of tons) 

1.750 

1.711 

1.609 

1.615 

1.587 

1.403 

1.171 

876 

795 

1.056 

1.049 

924 

813 

785 

802 

889 

The  above  chart  shows  that  between  2006  and  2010,  the  consumption  of  coal  remained 
relatively stable, while since 2010, despite some fluctuations, a decline is noticeable. In 2021, 
however, there was some recovery and coal consumption increased compared to 2020.  

An analysis of the data from 2006 to 2021 shows an upward trend in natural gas consumption. 
Overall, there was an increase in natural gas consumption. 

The  Polish  authorities  stressed  that  between  2006  and  2021,  there  was  a  decrease  in  heavy 
fuel  oil  consumption.  They  also  added  that,  although  there  was  a  general  downward  trend, 
there was a slight increase in 2015 and 2021. 
According to estimates from the Energy Forum8, the consumption of coal in 2022 was around 
66.000.000 tonnes, which represents a decrease of around 4.000.000 tonnes compared to the 

7 

Data for 2022 will only be published on 20 December 2023. The Polish authorities also highlighted that 
the consumption categories/sectors indicated by the Central Statistical Office for individual products do 
not have to be the same as the consumption categories that are subject to effective excise duty (e.g. the 
Central  Statistical  Office  list  includes  natural  gas  used  by  households,  while  on  the  basis  of  excise 
regulations, consumption is exempt from excise duty). 

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previous year. This indicates a continuation of the general downward trend observed in recent 
years.  

The  Polish  authorities  also  added  that  gas  purchases  from  abroad  to  meet  the  needs  of 
consumers in Poland in 2022, amounting to 154.5 TWh (556.200 Tj), were supplemented by 
gas  from  domestic  sources  amounting  to  39.8  TWh  (143.280  Tj).  Total  gas  supplies  from 
abroad in 2022 included imports and intra-EU purchases. In total, gas purchases for the needs 
of  consumers  in  Poland  in  2022  amounted  to  699.480  Tj9.  Using  the  same  source  of 
information, Poland noted that gas purchases in 2021 amounted to 831.960 Tj and in 2020 to 
768.960  Tj.  With  reference  to  the  data  in  the  table,  Poland  noted  that  the  upward  trend  of 
previous years is expected to continue. 

To  illustrate  the  price  increase,  the  Polish  authorities  provided  the  below  chart  (Chart  2) 
showing the average price for natural gas from January 2020 to May 2023.  

Chart 2 – Average price for natural gas (2020-2023)10 

The  chart  below  (Chart  3),  also  provided  by  the  Polish  authorities,  illustrates  trends  in 
historical  coal  and  natural  gas  prices  in  the  respective  wholesale  markets,  including  the 
increase in prices in 2022 related to the effects of Russia’s agression against Ukraine.  

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10 

that  effect:  https://nettg.pl/gornictwo/196416/gornictwo-wegiel-do-polski-plynal-wartkim-

See 
to 
strumieniem 
See also: https://www.ure.gov.pl/pl/paliwa-gazowe/charakterystyka-rynku/11092,2022.html  
Data extracted from the Polish Power Exchange (POLPX). 

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Chart  3 – Spot price of coal and natural gas in USD (2020-2023)11 

The Polish authorities additionally provided the wholesale prices (2020-2023)12 on heavy fuel 
oil illustrated in the chart below (Chart 4). 

Chart 4 – Wholesale prices for heavy fuel oil (2020-2023) 

Finally,  the  Polish  authorities  presented  daily  energy  prices  on  the  Polish  Power  Exchange 
(POLPX) in the below chart (Chart 5). 

11 

12 

EN 

Data  based  on  the  Amsterdam-Rotterdam-Antwerp (ARA)  and  Richards  Bay  (South  Africa)  markets; 
https://www.wnp.pl/gornictwo/notowania/ceny_wegla/, June 2023 
Ceny węgla – eng. price of coal; aktualna wartość – eng. actual value; zakres – eng. scope/period] 

Based on ORLEN wholesale price data. 

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Chart 5 – Daily Energy Prices (2016-2023) 

As regards the tax levels on the concerned products, the Polish authorities provided the below 
table  (Table  A)  which  compares  the  minimum  levels  of  taxation  as  applicable  under  the 
Directive  for  each  product  covered  by  their  request,  together  with  the  corresponding  rates 
currently in force in Poland (January 2023). They emphasised in this respect that the excise 
duty rates on heating fuels apply without distinction to both non-commercial and commercial 
customers. 

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Table A 

Energy 
product 

EU 
minima 
(EUR) 

EUR/P
LN 
(2023) 

EU 
minima 
in 2023 
(PLN) 

Excise 
duty  in 
2022  

(PLN) 

Excise duty 
in 2023 
without 
changing 
the excise 
duty rate 

(EUR) 

Difference 
between the 
EU minima 
and the 
actual 
taxation 
(PLN) 

Difference 
between the 
EU minima 
and the 
actual 
taxation 
(EUR) 

Change 
of the EU 
minima 
in 
relation 
to actual 
taxation 

15 

4.832 

72.48 

69 

14.2798 

3.48 

0.72 

(%) 

5.04 

0.3 

4.832 

1.45 

1.38 

0.2856 

0.07 

0.01 

5.04 

0.3 

4.832 

1.45 

1.38 

0.2856 

0.07 

0.01 

5.04 

oil    

Heavy 
fuel 
(in  PLN 
per         1 
000 kg) 

Natural 
gas 

(in  PLN 
per 
gigajoule 
gross 
calorific 
value) 

Coal  and 
coke     
(in  PLN 
per 
gigajoule 
gross 
calorific 
value) 

In  light  of  the  above  table,  according  to  the  Polish  authorities,  the  difference  between  the 
minimum levels of taxation as laid down in the Directive and the Polish rates, corresponds to 
5.04%, for all the energy products covered by their request.  

According  to  Poland,  the  excise  duty  appears  to  be  the  price  component  on  which  it  is 
possible  to  intervene  in  the  short  term  in  order  to  alleviate  the  undesirable  effects  of  the 
annual adjustment carried out in accordance with Article 13 of the Directive.  

To  support  their  request,  the  Polish  authorities  provided  the  Commission  with  the  charts 
below, presenting (i) the exchange rate as applicable on the first working day of each month 
from January 2022 to April 2023 (Chart 6); (ii) fluctuations in the exchange rate in October 
2022 (Chart 7); and (iii) the average monthly exchange rate for 2022 (Chart 8). 

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Chart 6 – EUR/PLN exchange rate on the first working day of each month (2022-2023) 

Chart 7 – EUR/PLN exchange rate in October (2022) 

Based  on  the  above  chart,  the  Polish  authorities  stressed  that  after  reaching  the  peak  on  11 
October 2022, the EUR/PLN exchange rate was progressively decreasing. 

Similarly,  they  also  highlighted  that,  based  on  the  chart  below,  the  exchange  rate  dated 
October 2022 was the highest in 2022.  

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Chart 8 – Average monthly EUR/PLN exchange rate (2022-2023) 

In light  of the information presented in  the above  charts, the Polish  authorities stressed that 
using October 202213 as a reference for the annual adjustment, in accordance with Article 13 
of  the  Directive,  had  a  negative  impact,  especially  in  light  of  the  fluctuation  of  the  Polish 
currency. According to the Polish authorities, this adjustment does not consider the dynamics 
of  economic  changes,  and  the  exchange  rate  fluctuations  in  the  period  from  October  of  a 
given year to the end of September of the next year are irrelevant. To give further evidence of 
this adverse effect, they presented the below example (Table B) emphasising that the excise 
duty  rates  for  the  energy  products  covered  by  their  request  would  have  been  within  the 
minimum levels, as laid down in the Directive, if the annual adjustment had been based on the 
exchange rate as it stood in January 2022. 

13 

On  the  first  working  day  of  October  2022,  the  said  value  was  the  highest  for  the  year  2022  and 
amounted to PLN 4.832 to the euro.  

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Table B 

Energy 
products 
covered 
by the 
request 

Coal and 
coke  

(per 
gigajoule 
gross 
calorific 
value) 

Natural 
gas  

(per 
gigajoule 
gross 
calorific 
value)  

Heavy 
fuel oil 
(per 
1 000 kg) 

EU 
minimum 
levels of 
taxation 

(in euro)  

Excise-duty 
rate  

(in Polish 
zloty)  

Tax rate based on average 
monthly EUR/PLN exchange 
rate in January 2022 

Rate  

2023  

0.3  

1.38 

0.3 * 4.55 ≈ 1.37 

No change needed 

No change needed 

0.3 

1.38 

0.3 * 4.55 ≈ 1.37 

15  

69 

15 * 4.55 ≈ 68 

No change needed 

Given the fact that the PLN/EUR exchange rate of PLN 4.8320 applicable in 2023 (in 2022, 
this rate was PLN 4.5826, and for 2024 it will return to a level of PLN 4.6123), and in order 
to maintain the required EU minimum levels laid down in the Directive, Poland considers that 
an increase  in the applicable  rates of excise duty on the above energy products would have 
been required. The derogation therefore appears necessary according to the Polish authorities. 

The Polish authorities considered that it was difficult to estimate the effect on the budget of 
the  change  in  the  rates  of  excise  duty  on  the  energy  products  covered.  However,  they 
confirmed  that  since  the  correction  of  the  rates  is  minor,  it  should  not  have  a  significant 
impact  on  budget  revenues,  especially  since  high  prices  of  energy  carriers  generate  higher 
budget revenues from VAT14. 

The  budgetary  expenditure  for  the  period  covered  by  the  derogation  request  is  estimated  at 
PLN 6.5 million (based on the consumption data and income of 2022). The table below (Table 

14 

According to their estimates, for recipients who do not benefit from excise-tax exemptions (most of the 
entities using coal and natural gas for heating purposes are exempt from excise duty, e.g. households or 
energy-intensive  businesses),  the  change  means  an  increase  in  costs:  in  the  case  of  heavy  fuel  oil  by 
approx. 0.4 PLN/kg (approx. 0.5 PLN/kg with VAT), in the case of coal by approx. 1.67 PLN/tonne (2 
PLN/tonne with VAT), and in the case of group E high-methane natural gas by approx. 0.2 PLN/cubic 
metre (0.27 PLN/kg/m3 including VAT). 

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C), provided by the Polish authorities, presents in this respect the budgetary implications for 
each of the energy products concerned. 

Table C  

Excise product 

Budgetary implications as 
regards excise duty for the 
period of 6 months of 2023 
[PLN million] 

Heavy fuel oil and other fuels used for heating 

Natural gas and other gas fuels used for heating 

Coal and coke 

0.5 

4.2 

1.8 

• 

Consistency with existing policy provisions in the policy area 

Article 19(1), first subparagraph of the Directive reads as follows:  

“In addition to the provisions set out in the previous Articles, in particular in Articles 5, 15 
and 17, the Council, acting unanimously on a proposal from the Commission, may authorise 
any  Member  State  to  introduce  further  exemptions  or  reductions  for  specific  policy 
considerations.”. 

Article 13 (1) of the Directive requires that for Member States that have not adopted the euro, 
the value of the euro in national currencies to be applied to the value of the levels of taxation 
shall be fixed once a year. The rates to be applied shall be those obtaining on the first working 
day of October and published in  the  Official  Journal  of the European Union  and shall have 
effect from 1 January of the following calendar year. 

Article  13(2)  of  the  Directive  states  that  “Member  States  may  maintain  the  amounts  of 
taxation  in  force  at  the  time  of  the  annual  adjustment  provided  for  in  paragraph  1  if  the 
conversion  of  the  amounts  of  the  level  of  taxation  expressed  in  euro  would  result  in  an 
increase of less than 5 % or EUR 5, whichever is the lower amount, in the level of taxation 
expressed in national currency”. 

The relevant  Polish national  rates,  converted on  the basis of  Article 13(1), are just over the 
5% tolerance permitted under Article 13(2) of the same Directive. By asking for a derogation 
to  allow the non-indexation of its national  rates, the Polish authorities are asking for a very 
small (less than 1 percentage point) temporary increase in the tolerance level applicable to the 
annual adjustment of rates for a limited period. 

By means of the requested derogation, limited in time, the Polish authorities intend to mitigate 
the negative impact that would result from an increase in the levels of taxation due to a high 
euro-zloty  (EUR/PLN) exchange rate of  euro,  applicable due to Article 13 of the Directive. 
That  reduction  would  correspond  to  the  amount resulting  from  the  exchange  rate  difference 
after annual adjustment carried out in accordance with Article 13 of the Directive. 

Poland  considers  that  the  temporary  measure  should  partially  alleviate  the  social  and 
economic burden that Polish consumers are enduring in the present geopolitical context. The 

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Polish authorities pointed out in this respect that the tax reduction would be beneficial also for 
the sellers of the covered energy products.  

The  possibility  of  keeping  such  a  tax  reduction  can  be  permitted  under  Article  19  of  the 
Directive  since  its  purpose  is  to  allow  Member  States  to  introduce  further  exemptions  or 
reductions for specific policy considerations.  

The limited period of validity of 6 months is within the maximum period allowed by Article 
19(2) of the Energy  Taxation  Directive, laying down, for this type of measure,  a maximum 
period of 6 years, with the possibility of renewal.  

However, the derogation should not undermine the future adoption by the Council of a legal 
act based on a Commission proposal for amendment of the Energy Taxation Directive15.  

State aid rules 

The  temporary  tax  reduction  envisaged  by  the  Polish  authorities  falls  under  the  relevant 
minimum levels of taxation as laid down in the Directive.  

The present proposal is without prejudice to any assessment of the Polish measure under State 
aid rules. Moreover, the proposal for a Council implementing decision does not prejudge the 
Member State’s obligation to ensure compliance with State aid rules. 

• 

Consistency with other Union policies 

Each  request  for  derogation  under  Article  19  of  the  Energy  Taxation  Directive  must  be 
examined  by  the  Commission  taking  into  account:  (i)  the  proper  functioning  of  the  internal 
market; (ii) the need to ensure fair competition; (iii) and EU policies on health, environment, 
energy and transport policies. 

As  highlighted  by  the  Polish  authorities,  the  objective  of  such  tax  reduction  is  to  partially 
alleviate the social and economic burden the Polish population would face in the event of a 
tax increase due to the high exchange rate of euro, coupled with rampant inflation affecting 
both  households  and  businesses,  partly  due  to  the  recent  price  increase  resulting  from  the 
conflict in Ukraine.  

As  a  result  of  that  situation,  the  temporary  reduction  is  not  likely  to  affect  intra-EU  trade. 
Given its limited effects and duration, the requested measure should not distort competition or 
hinder the functioning of the internal market.  

As underlined in the RePowerEU Communication16, while focusing on vulnerable households 
and  businesses,  the  Commission  invites  Member  States  to  adopt  measures  incentivising 
energy  savings  and  reducing  fossil  fuels  consumption.  Nonetheless,  given  its  short  duration 
and  the  current  exceptional  circumstances  linked  to  the  geopolitical  situation,  the  requested 
derogation appears appropriate and proportionate. The measure also takes account of the need 
to balance the specific policy objectives listed in Article 19 of the Energy Taxation Directive, 

15 

16 

Proposal for a Council directive restructuring the Union framework for the taxation of energy products 
and electricity (recast), 14.7.2021, 563 final 2021/0213 (CNS). 
Communication from the Commission to the European Parliament, the European Council, the Council, 
the European Economic and Social Committee and the Committee of the Regions  ‘REPowerEU: Joint 
European  Action  for  more  affordable,  secure  and  sustainable  energy’,  (COM(2022)  108  final, 
8.3.2022). 

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and  notably  the  EU’s  environmental  policy,  with  the  imperative  of  ensuring  energy 
affordability for businesses and households.  

Under these circumstances and given that the measure is temporary and limited in scope, it is 
appropriate to grant the authorisation as requested. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article 19 of Council Directive 2003/96/EC. 

• 

Subsidiarity (for non-exclusive competence)  

The field of indirect taxation covered by Article 113 TFEU is not in itself within the exclusive 
competence of the European Union within the meaning of Article 3 TFEU. 

However,  pursuant  to  Article  19  of  Directive  2003/96/EC,  the  Council  has  been  granted  an 
exclusive competence, as a matter of secondary law, to authorise a Member State to introduce 
further exemptions or reductions within the meaning of that provision. Member States cannot 
therefore substitute themselves for the Council. As a result, the principle of subsidiarity is not 
applicable  to  the  present  implementing  decision.  In  any  event,  since  this  act  is  not  a  draft 
legislative act, it should not be transmitted to national parliaments pursuant to Protocol No 2 
to the Treaties for review of compliance with the subsidiarity principle. 

• 

Proportionality 

The proposal respects the principle of proportionality.  
The tax reductions do not exceed what is necessary to attain the objective in question.  
The tax reductions are applicable during a limited six-month period.  

• 

Choice of the instrument 

The instrument proposed is a Council implementing decision.  
Article 19 of Directive 2003/96/EC makes provision for this type of measure only. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The measure does not require the evaluation of existing legislation. 

• 

Stakeholder consultations 

This proposal is based on a request made by Poland and concerns this Member State only. 

• 

Collection and use of expertise 

There was no need for external expertise. 

• 

Impact assessment 

This proposal concerns an authorisation for an individual Member State upon its own request 
and does not require an impact assessment. 

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• 

Regulatory fitness and simplification 

The measure does not provide for any simplification.  
It is the result of the request made by Poland and concerns this Member State only. 

• 

Fundamental rights 

The measure has no bearing on fundamental rights. 

4. 

BUDGETARY IMPLICATIONS 

The measure does not impose any financial or administrative burden on the European Union. 
The proposal therefore has no impact on the budget of the Union. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

An  implementation  plan  is  not  necessary.  The  proposal  concerns  an  authorisation  for  a  tax 
reduction  for  an  individual  Member  State  upon  its  own  request.  It  is  provided  for  a  limited 
period of 6 months.  

The  applicable  tax  rates  will  be  below  the  minimum  levels  of  taxation  set  by  the  Energy 
Taxation Directive (Article 9).  

The measure can be evaluated in case of a request for a renewal after the validity period has 
expired. 

• 

Explanatory documents (for directives) 

The proposal does not require explanatory documents on the transposition. 

• 

Detailed explanation of the specific provisions of the proposal 

Article 1 stipulates that Poland will be allowed to apply reduced taxation rates to heavy fuel 
oil, natural gas, coal, and coke, used as heating fuels, below the minimum levels of taxation. 

Article 2 stipulates that the authorisation requested is granted for  6 months, as requested by 
Poland, within the maximum period of 6 years allowed by the Directive. 

2024/0004 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

authorising Poland to apply reduced rates of excise duty to heavy fuel oil, natural gas, 
coal, and coke, used as heating fuels. 

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THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union,  

Having  regard  to  Council  Directive  2003/96/EC  of  27  October  2003  restructuring  the 
Community framework for the taxation of energy products and electricity17, and in particular 
Article 19 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

By  virtue  of  Council  Implementing  Decision  (EU)  2023/119718,  Poland  was 
authorised to apply reduced rates of excise duty to heavy fuel oil, natural gas, coal, and 
coke,  used  as  heating  fuels,  in  accordance  with  Article  19  of  Directive  2003/96/EC. 
That authorisation expired on 30 June 2023. 

By letter of 30 June 2023, Poland requested authorisation to continue to apply reduced 
rates of excise duty to heavy fuel oil, natural gas, coal and coke, used as heating fuels, 
pursuant  to  Article  19  of  Directive  2003/96/EC.  Additional  information  and 
clarifications  in  support  of  the  request  were  provided  by  the  Polish  authorities  on  8 
September 2023, and on 5 and 13 October 2023. The authorisation was requested for a 
period of six months starting from 1 July 2023 until 31 December 2023. 

According  to  the  Polish  authorities,  the  application  of  a  reduced  tax  rate  aims  at 
mitigating  the  negative  impact  that  would  have  been  caused  by  an  increase  in  the 
levels  of  taxation  due  to  a  high  exchange  rate  between  the  euro  and  the  złoty,  in 
accordance with Article 13 of Directive 2003/96/EC. That reduction would correspond 
to the amount resulting from the exchange rate difference of the two currencies after 
the annual adjustment carried out in accordance with Article 13 of that Directive. That 
reduction would render the applicable tax rates below the relevant minimum levels of 
taxation referred to in Article 9 of Directive 2003/96/EC. 

The  requested  authorisation  is  not  likely  to  distort  competition  or  hinder  the  proper 
functioning  of  the  internal  market.  Given  its  short  duration  and  the  exceptional 
circumstances  linked  to  the  geopolitical  situation,  the  requested  authorisation  is 
considered  adequate  and  proportionate.  The  authorisation  balances  out  the  specific 
policy considerations referred to in Article 19(1) of Directive 2003/96/EC, and notably 
the  Union’s  environmental  policy,  with  the  need  to  ensure  energy  affordability  for 
businesses  and  households.  The  tax  reduction  would  partially  offset  the  increased 
energy costs and is not cumulative with any other type of tax reductions. 

Poland should therefore be authorised to continue to apply reduced rates of excise duty 
to heavy fuel oil, natural gas, coal, and coke, used as heating fuels, as requested. 

In accordance with Article 19(2) of Directive 2003/96/EC, each authorisation granted 
under  that  provision  is  to  be  limited  in  time.  However,  in  order  not  to  undermine 
future  general  developments  of  the  existing  legal  framework,  it  is  appropriate  to 
provide  that,  should  the  Council,  acting  on  the  basis  of  Article  113,  or  any  other 
relevant provision, of the Treaty on the Functioning of the European Union, introduce 
a modified general system for the taxation of energy products and electricity to which 

17 
18 

OJ L 283, 31.10.2003, p. 51. 
OJ L 158, 21.6.2023, p. 71. 

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this authorisation would not be adapted, this authorisation should cease to apply on the 
day on which those general rules become applicable.  

(7) 

(8) 

In  order  to  ensure  a  smooth  tackling  of  the  adverse  effects  for  consumers  of  energy 
products, it should be ensured that Poland may apply the tax reduction, as requested, 
with effect from 1 July 2023. 

This  Decision  is  without  prejudice  to  the  application  of  Union  rules  regarding  State 
aid, 

HAS ADOPTED THIS DECISION:  

Article 1 

Poland is authorised to apply reduced rates of excise duty to heavy fuel oil, natural gas, coal, 
and coke, used as heating fuels, below the relevant minimum levels of taxation referred to in 
Article 9 of Directive 2003/96/EC. 

Article 2 

This Decision shall apply from 1 July 2023 until 31 December 2023. 

However,  should  the  Council,  acting  on  the  basis  of  Article  113,  or  any  other  relevant 
provision,  of  the  Treaty  on  the  Functioning  of  the  European  Union,  introduce  a  modified 
general system for the taxation of energy products and electricity to which the authorisation 
granted in Article 1 of this Decision would not be adapted, this Decision shall expire on the 
day on which such system becomes applicable. 

This Decision is addressed to the Republic of Poland. 

Done at Brussels, 

Article 3 

For the Council 
The President 

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