The Polish government is considering a further cut in excise tax on beer and wine, according to reports in the local press today.

Following an increase in revenue after taxes were cut 30% last year, the Finance Ministry is proposing to lower the excise tax on beer and wine twice in 2004.

The move is also prompted by the fear that Polish retailers would suffer from a grey market once Poland's borders are opened up to the rest of the EU.

Deputy Finance Minister Robert Kwasniak was quoted today saying: "The beer and wine excise tax rate could well be altered. This is likely especially in the case of beer, which is subject to much heavier taxation here than in neighbouring countries.

The first cut is expected on January 1. Another cut may then follow if the results a repositive in May, when Poland joins the EU.