Although the government is implementing broad deregulatory changes as promised, entrepreneurs warn that these lack coherence, predictability, and tangible improvements, especially in interactions with administration. The Polish Entrepreneurs and Employers Association (ZPP) cites as an example the case of British American Tobacco (BAT) and its shipment of 200,000 e-cigarette cartridges seized by the customs and tax office. The companies affected are counting their losses.
Deregulation is one of the most important challenges for the Polish economy. Simplifying regulations and reducing bureaucracy can enhance the competitiveness of Polish companies and improve business conditions. According to government declarations, this process should cover all sectors and concern both administrative actions and economic regulations. In early July, the government summarized the ongoing regulatory simplification process initiated by then-Prime Minister Donald Tusk through the establishment of two deregulatory teams — a social team led by Rafał Brzoska and a governmental one headed by Maciej Berek, Chief of the Permanent Committee of the Council of Ministers. As a result, the government adopted 125 deregulatory proposals and submitted 63 draft laws to the parliament, about 20 of which have already been signed by the president.
“One of the key elements of the deregulatory process is focusing on how public administration conducts its activities. The second area concerns the activities of administrative bodies, where unfortunately we still encounter actions that seriously undermine the government’s deregulatory efforts, which business generally views positively,” Jakub Bińkowski, board member of ZPP, emphasized in an interview with Newseria.
Deregulation is intended, among other things, to improve the daily practices of offices — emphasizing transparency and predictability of administration and tax services. However, experts at the ZPP conference “Completion of Government Deregulation Works in the Light of Public Administration Actions” noted that problems persist.
“On one hand, public administration bodies, ministries, and the prime minister say dialogue with business is a priority. On the other hand, at the local level, administrative bodies such as tax offices often act in legally questionable ways or sometimes even in ways resembling discrimination or harassment of entrepreneurs,” Bińkowski stressed. “We refer here to actions by tax authorities in Poznań, where the customs and tax chamber decided to seize a large batch of goods worth millions of zlotys without clear legal basis, exposing businesses and entrepreneurs to negative purely business and tax consequences.”
The case discussed during the press conference concerned British American Tobacco and its British partner Nicoventures. In spring this year, the Poznań customs and tax chamber detained more than 200,000 e-cigarette cartridges valued at PLN 1.5 million, citing suspected violations of tobacco law.
“We declare that the cartridges were seized due to irregularities identified by officers. Requirements for electronic cigarettes and refill containers stem from the Act of November 9, 1995, on protecting health against the effects of tobacco use and tobacco products, especially Article 11c defining technical requirements and standards for these goods. Failure to comply with these conditions renders the products non-compliant with EU and national law and, considered dangerous, they should not circulate freely in the EU, including Poland,” stated the Customs Administration (KAS) in a July 7 statement, noting the case is ongoing.
Although the police discontinued proceedings, customs authorities have not allowed the goods into circulation.
“No final decisions or rulings confirming legal violations related to the import of BAT cartridges have been issued. KAS only refers to unspecified ‘irregularities’ detected by officers. KAS actions, especially by the Head of the Wielkopolska Customs and Tax Office, violate fundamental rule-of-law principles such as legality,” emphasized Anna Partyka-Opiela, partner at law firm Rymarz Zdort Maruta. “Contrary to KAS’s statements, their actions in matters concerning BAT group companies exceed the limits set by EU and national law. KAS authorities do not have blank, unlimited powers to prosecute ‘whomever they want and for whatever they want,’” she added.
The cartridge seizure blocked product introduction before new, higher excise rates took effect on July 1, 2025. Under transitional rules, vaporizing devices and liquids in disposable e-cigarettes introduced before that date (i.e., without excise stamps) can be sold until August 31, 2025, within a two-month transitional period. The companies would have introduced the products before the law changed. The batch of 211,000 units, taxed at PLN 40 each, causes the LTD company a minimum net loss of approximately PLN 8.4 million. BAT, as the contracting party awaiting delivery, also suffered losses, currently being calculated and investigated. Additionally, more shipments valued at PLN 20 million are en route to Poland but cannot be released into the market due to the Poznań customs chamber’s decisions.
“This action feels stigmatizing. I have not heard of, for example, KGHM or other state-owned companies having import problems,” commented Marcin Cichy, Managing Director of the British-Polish Chamber of Commerce (BPCC), during the conference. “British American Tobacco will have full rights to sue the state for lost profits. The police have clearly stated their position, yet if product introduction continues to be unjustly delayed, it may represent ‘ex ante’ costs of lost profits.”
“Such cases happen; we hope each will be clarified and remain incidents, not new practice,” emphasized Jakub Bińkowski.
Meanwhile, the tobacco industry does not yet feel deregulation; on the contrary, several new regulations have appeared in recent months. In April, laws banning, among others, heated tobacco products with characteristic flavors came into force. In June, the president signed an amendment to the anti-tobacco law prohibiting e-cigarette and nicotine pouch sales to minors and online. An excise tax amendment was also introduced recently. The Ministry of Health is now preparing rules banning disposable e-cigarettes and flavorings in nicotine pouches.
“Tobacco growers feel legislative chaos; laws change constantly, impacting tobacco cultivation. The Ministry of Health, despite planning far-reaching changes, has not met with us even once,” said Krzysztof Konieczny, Vice President of the National Association of Tobacco Growers in Grudziądz. “Year after year, the situation worsens. In our region alone, there were once about 700 growers; now we are 120. Cultivation is shrinking solely due to lack of profitability.”
