Prime Minister Donald Tusk's new government has put forth proposals which could see price rises to both fuel and cigarettes. The government has taken the decision in an attempt to raise approximately zł.2.45 billion for next year's budget, reported Gazeta Wyborcza.

The plans involve increases to excise tax on both fuel and tobacco, which would come into effect at the beginning of 2012. It is expected that the rise of about 18 groszy per liter of fuel, could bring in zł.2.2 billion. The suggested 4 percent tax increase on tobacco could add another zł.245 million to the government's coffers, but only if sales drop no less than 2.5 percent as a result of possible price increases by retailers.

The first draft of the bill, which was presented to the Polish parliament on Tuesday, also includes a freeze on salaries for judges and prosecutors which the government hopes will save the budget an extra zł.140 million.