President vetoes alcohol excise and sugar tax hike — what it means in 2026

President Karol Nawrocki has vetoed two tax bills passed by the Sejm (lower house of Parliament) — an amendment to the Excise Duty Act and an amendment to the Public Health Act concerning the sugar levy. Both laws were set to take effect in 2026 and would have generated billions of zlotys in additional budget revenue.

What did the vetoed bills propose?

Alcohol excise increase

The excise duty amendment would have raised rates on:

• ethyl alcohol,
• beer,
• wine and fermented beverages,
• intermediate products (e.g., liqueurs, vermouth).

Rates were to increase by 15% in 2026 (from 2025 levels) and by an additional 10% in 2027. For comparison, existing legislation provided for only a 5% annual increase.

Sugar levy increase

The second vetoed bill proposed significant increases to the sweetened beverage levy:

• The base rate was to rise from PLN 0.50 to PLN 0.70 per litre for drinks with up to 5g of sugar or sweetener per 100ml.
• An additional PLN 0.10 charge for every gram of sugar above 5g per 100ml.
• The caffeine/taurine surcharge was to jump from PLN 0.10 to PLN 1.00 per litre — a tenfold increase primarily affecting energy drinks.

President's reasoning

President Nawrocki justified his veto with several arguments:

• Fiscal, not health-driven motives — the president argued the government's intentions were not health-related but rather an attempt to "patch the budget" at citizens' expense.
• Insufficient preparation time — the laws were introduced hastily, without adequate time for businesses and consumers to adapt to new rates.
• Alternative solutions — the president suggested the government should focus on closing tax loopholes and combating VAT fraud instead of raising taxes.

Financial impact of the veto

The president's decision has measurable consequences for the state budget:

• Sugar levy — the National Health Fund (NFZ) will not receive an additional PLN 855 million per year intended for health prevention.
• Alcohol excise — budget revenues will be lower by approximately PLN 1.8 billion in 2026 and PLN 2.8 billion in 2027.

In total, the veto represents a shortfall of roughly PLN 2.7 billion in 2026 and over PLN 3.6 billion in 2027.

What applies in 2026?

Due to the presidential veto, the existing rules remain in force for 2026:

• Alcohol excise — increases by 5% under the previously enacted indexation (not 15% as the government planned).
• Sugar levy — remains at the current level of PLN 0.50 per litre for beverages with sugar or sweetener.

What happens next?

The government has several options:

• Override vote in the Sejm — overriding a presidential veto requires a 3/5 majority, which is difficult to achieve given the current political landscape.
• New bill — the government may prepare a modified version addressing the president's objections.
• Finding budget savings — the need to identify alternative funding sources for the resulting budget gap.

For food and alcohol industry businesses, the veto means stable tax rates at least until new legislation is potentially enacted. Consumers, meanwhile, will not feel the planned price increases on sweetened beverages and alcohol — at least for now.