As part of an effort to combat illicit trade and tax dodging, Poland’s government plans to begin requiring licenses for both the importing and domestic marketing of lubricants and fuels.
The proposal would provide an exemption, however, for lubricant suppliers and traders that ensure their products are recycled after use.
Called the “new fuel package,” the draft regulation is primarily aimed at protecting tax revenue by curbing the gray market, according to a May 5 report by Investors’ Zone, a Polish energy, legislation and finances news outlet. The proposal stems from concern about a problem that has plagued numerous nations, from Turkey to Russia to Mexico: base oils or diesel being imported as base oils or lubricants but then consumed as fuel. By doing so the perpetrators avoid paying taxes on fuel imports.
The bill, currently being reviewed by cabinet ministers, would require companies to obtain a license for the import of fuels or lubricants, including base oils and for distribution, transportation, trade or storage of those materials within the country if the traded value of the products exceeds €100,000 (U.S. $108,000). The idea is to give the government more control over handling of these products to help it ensure that excise taxes are paid.
The license for production of fuels or energy would be obligatory when the finished products are made with imported liquid fuels and lubricants, and the import is carried out by the producing company itself or through another entity.
According to the bill, an exemption could be granted to lubricant manufacturers and lubricant or base oil traders capable of recovering and recycling waste oils or that contract recycling companies to do so. They will not need licenses to import for their own needs or trade and distribute within the country. The bill is expected to be adopted later this year, before general elections in Poland planned for Nov. 11.