Warsaw (Puls Biznesu) – The cosmetics producers in Poland say that when the 10 percent excise duty is levied they will invest more.
Poland is the only EU country to have an excise duty for colored cosmetics. The budget revenues did not exceed PLN 100m (EUR 26m) annually. Powders, eye-shadows, mascaras, lipsticks, deodorants and even dog shampoos are taxed with the duty amounting to 10 percent. Zyta Gilowska, the Minister of Finance, has said recently that she would sign a rule to levy this excise duty soon.
“We have been told by the Ministry of Finance that on December 1st the rule will come into force. But we are skeptical. So far, the cooperation with the Ministry has been difficult”, Blanka Chmurzynska, the general director of the Polish Association of Private Employers of the Cosmetics Sector said.
The excise duty fell from 20 and 25 percent to 10 percent in recent years. Today, the Polish producers keep increasing exports, which in some cases amounts to 40 percent of sales.
“The excise duty costs PLN 80,000 monthly. Now, we will be able to invest this money and cut our prices. Besides, we will save a lot of time and health. The excise duty should be returned within 30 days but in fact we fight with the duty office for months asking to have our money returned. Because of alleged mistakes in the applications, the money is often lost”, Maria Dera from Bell said.
(PLN 1 = EUR 0.260)