English Section

EU approves Poland's recovery plan revision, dropping combustion engine taxes

21.05.2026 10:30
The European Commission has approved changes to Poland's national post-pandemic recovery plan, removing planned taxes on combustion-engine vehicles and unlocking a path to billions in additional EU funds.
Pixabay License
Pixabay License Image by Jai79 from Pixabay

Deputy Minister for Funds Jan Szyszko said three combustion-engine levies—on car ownership, vehicle registration and company fleets—had been successfully removed.

The taxes were originally written into the plan by the previous government, and failure to implement them could have cost Poland up to EUR 4 billion in penalties.

"There were supposed to be three taxes on combustion-engine cars—there will be none," Szyszko said, adding that a further PLN 29 billion (EUR 6.8 billion) from the recovery fund would flow to Poland within two weeks.

In place of the scrapped measures, Poland committed to two new priorities. A heating sector fund worth PLN 3 billion (around EUR 700 million) will be established by August to finance the decarbonization of district heating plants and reduce energy bills.

Poland also increased its contribution to the EU's IRIS² satellite communications program from EUR 500 million to 656 million, which will provide secure connectivity for government institutions, eliminate internet dead zones, and give Poland an independent communications capability in crises ranging from cyberattacks to infrastructure failures.

The formal EU approval clears the way for member states to ratify the changes at a meeting of EU finance ministers in Luxembourg on June 12, chaired by Cyprus.

Poland could then submit its eighth payment request, with a transfer expected in September—allowing Warsaw to draw down its full non-repayable grant allocation of more than EUR 25 billion.

So far, PLN 68 billion (EUR 16 billion) has been disbursed to Polish businesses and local governments under the plan.

The Ministry of Development Funds and Regional Policy said it intends to pay out a further PLN 140 billion (EUR 33 billion) by the end of 2026. The deadline for completing all recovery plan targets is August, with final payment requests due by end of September.

(jh/gs)

Source: Polish Radio, PAP