The European Commission agrees with the revision of the Polish KPO

The National Reconstruction Plan in its original formula was controversial.

One of the most difficult ideas to swallow was the taxation of combustion cars, which in Poland provoked opposition from both citizens and the government.

Ultimately, the European Union accepted a modified compromise solution:

Instead of a tax, Poles will be encouraged by the government to buy electric cars with numerous subsidies, the total amount of which is to amount to PLN 1.6 billion.

Owning an electric car is still beyond the reach of many Poles. Despite the subsidies proposed so far and the growing interest in zero-emission vehicles, the final purchase costs exceed the budget of most households. As a result, Poles still choose combustion cars, which have a negative impact on the natural environment. Changes in this area are to be accelerated by the modified National Reconstruction Plan, according to which the state will encourage citizens to choose electric cars with the help of various subsidies.

The total amount planned for this purpose is EUR 373.75 million, or approximately PLN 1.6 billion.

The original assumptions of the National Reconstruction Plan included taxing owners of traditional combustion cars, which was met with widespread dissatisfaction among Poles. Considering the fact that electric cars are still a minority in Poland, this would indeed be too radical a solution.

A much better option seems to be the incentive system proposed by the government through purchase subsidies.

The adoption of the modified KPO program by the Economic and Financial Affairs Council (ECOFIN) was on July 16, 2024. In total, the European Union would allocate EUR 59.8 billion for this purpose, including EUR 34.5 billion in loans and EUR 25.3 billion in grants.

Thanks to the new subsidy programs, everyone will have a chance to buy a new or used electric car on preferential terms.

FAQ

1. Does the European Commission consent to the revision of the Polish KPO?
   

   Yes, the European Commission has accepted the revision of the National Reconstruction Plan, which abolished the tax on combustion cars in favor of a system of subsidies for the purchase of electric cars.

2. What were the original assumptions regarding the tax on combustion cars in the KPO?

   Originally, it was planned to introduce a one-off registration fee and an annual tax on the ownership of combustion cars, starting in 2026. The tax was to be higher for older cars and those with worse emission standards.
   
   

3. What will replace the tax on combustion cars?

   The tax on combustion cars will be replaced with a system of subsidies for the purchase of electric cars. The total amount of subsidies will amount to approximately PLN 1.6 billion.

4. What is the aim of the new subsidy system?

   The aim of the new system is to encourage citizens to purchase electric cars, which is to contribute to reducing exhaust emissions and promoting more ecological alternatives.