Poland's Parliament Approves Windfall Tax on Fuel Companies
The Sejm passed legislation on June 19 imposing a 60% tax on excess fuel profits, targeting state giant Orlen and other energy firms. The government expects to raise €940 million to offset consumer fuel subsidies.
Poland's lower house of parliament approved government legislation on Friday, June 19, introducing a windfall tax on fuel companies, including state-controlled energy giant Orlen. The bill passed with 231 votes in favor, 201 against, and one abstention.
How the Tax Works
Under the draft law, excess profits are defined as revenue from liquid fuel sales exceeding what would have been generated using a company's average 2025 fuel sales margin, increased by 20%. Such windfall gains would be taxed at 60%. The tax applies to profits generated between March and December 2026.
The government expects the measure to raise around 4 billion zloty (€940 million). According to a regulatory impact assessment, state energy giant Orlen is expected to account for about 60% of the tax base, with the remaining 40% coming from other market participants.
Political Battle Ahead
The bill now moves to the Senate before being sent to President Karol Nawrocki for signature. Nawrocki, who is aligned with the right-wing opposition and has vetoed government bills at a record rate, has previously opposed several fiscal measures. Opposition lawmakers criticized the proposal, warning that additional taxation could discourage investment in the energy sector.
For foreigners: If you're involved in Poland's energy sector or considering investments, monitor this legislation closely. The tax reflects broader European trends of capturing windfall profits from energy companies, but Poland's political divided government means implementation is uncertain. Energy-sector regulations and tax burdens may shift depending on the final outcome.
Sources
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