Poland's government has adopted draft budget-related bills assuming, among others, a wage freeze in the public sector in 2013 and a hike in tobacco excise as well as a draft amendment to the VAT Act, the government's press office said in a statement.

Poland will freeze public finance sector wages at the 2012 level, with only a few small exceptions, the statement showed.

Excise tax on tobacco products will be raised by 5%. The sole increase of excise on cigarettes is expected to generate additional PLN 345 million for the budget.

Poland will maintain limitations on VAT deductions in purchases of passenger cars used for transport of goods by the end of 2013, the press office also said.

The National Road Fund (KFD) will be capitalized with PLN 165 million to enable financing of road repair works in 2013.

Poland will also introduce a number of changes to the VAT tax, including the increase of VAT rate for artisan products from 8% to 23% and introducing a 23% VAT on non-public postal services provided by the public operator.

The new VAT regulations are expected to make VAT settlement simpler, introduce legal stability and reduce bureaucratic burdens on entrepreneurs, the government's press office wrote.