The Monetary Policy Council has once again raised NBP interest rates. Although economists had expected a larger increase, this does not change the fact that interest rates have already been raised 10 times since October 2021, resulting in an increase not only in mortgage payments, but also in interest rates that are important from the perspective of taxpayers – tax, statutory and maximum interest, which translates into a higher – compared to last year already twice – value of interest for tax liabilities that have not been paid within the statutory deadlines.

By a decision dated July 7, 2022. The Monetary Policy Council of the National Bank of Poland raised NBP interest rates by another 50 basis points. This is the tenth rate hike since October 2021. The consequence of these decisions is not only an increase in mortgage installments. This is because the level of interest rates also affects tax, statutory and maximum interest rates. In simple terms, this means that taxpayers will pay higher interest rates on the resulting tax arrears and other debts. Their amount – compared to the previous year – is already double. 

After the MPC’s recent increases, the NBP’s reference rate is 6.50%, while the other NBP interest rates are respectively:

•  Lombard rate 7.00% per annum,
• deposit rate 6.00% on an annual basis,
• bill rediscount rate 6.55% per annum,
• bill discount rate 6.60% per annum.

It is worth noting here that the amount of interest charged is mainly influenced by the reference rate and the Lombard rate.

Tax interest

The amount of tax interest is regulated by Article 56 §1 of the Tax Ordinance, according to which the rate of interest on late payment is equal to the sum of 200% of the base lombard loan rate, determined in accordance with the regulations of the National Bank of Poland, and 2% – except that the rate cannot be lower than 8%.

From January 1, 2016 until February 8, 2022, the tax interest rate was kept at the lowest level, 8%. However, due to Poland’s rapidly rising inflation, the NBP MPC raised the lombard rate by 0.25 percentage points, as a result of which the interest rate rose to 8.5% as early as February, and currently stands at 16%.