Polish President Signs Windfall Tax on Fuel Companies
- On Thursday, Polish President Karol Nawrocki signed a windfall tax bill targeting energy company profits, reversing his earlier blockade. He insisted the government now assume full responsibility for reducing fuel prices for consumers.
- Prime Minister Donald Tusk argued the tax was necessary to fund roughly 4.7 billion zloty in fuel subsidies the government had spent. Nawrocki previously referred the bill to the Constitutional Tribunal, citing retroactive concerns.
- The legislation levies a 60% charge on excess fuel sales profits calculated against 2025 margins increased by 20%. Expected to raise around 4 billion zloty, it aims to offset prior government expenditures on price protection.
- On Friday morning, the government announced it would reduce VAT on fuels from 23% to 8% and cut excise duty. Finance minister Andrzej Domański estimated these measures would lower fuel costs by 1.2 zloty per litre.
- These measures unfold amid growing concerns over Poland's public finances, as the country runs one of the European Union's highest deficits. Moody's recently lowered Poland's rating to A3, pointing to a "deteriorating" fiscal situation.
54 Articles
54 Articles
With a new tax, Poland wants to reduce fuel costs. President Nawrocki is relying on a courageous reform that could surprise.
(Berlin=Yonhap News) Correspondent Kim Gye-yeon = The Polish government, in an effort to lower soaring gasoline prices, is imposing windfall taxes on oil companies that have earned excess profits since the outbreak of the Middle East war...
Revenues from the tax on extraordinary profits will be sufficient to cover 2.5 months of the Lower Fuel Prices program, according to estimates from PKO Bank Polski economists. Analysts believe that the fuel price reduction will reduce inflation by approximately 0.6-0.7 percentage points.
Poland is introducing a tax on excess profits for oil companies in order to lower gasoline and diesel prices. President Karol Nawrocki said on Thursday evening that he had signed the bill into law.
In view of the high fuel prices, Polish President Nawrocki has signed a law on the introduction of an over-profit tax. Lars Klingbeil has so far failed the Union in Germany.
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