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[BUSINESS] · Poland · 35 sources

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Poland introduces windfall tax on fuel corporations FAST-MOVING

President Karol Nawrocki has signed a new law introducing a 60 percent windfall tax on the excess profits of fuel corporations. The tax is intended to apply to revenues earned between March 1, 2026, and March 31, 2027. Despite signing the legislation, the President has referred it to the Constitutional Tribunal for a post-signature review of its constitutionality, citing concerns regarding its retroactivity.

The revenue generated from this tax is earmarked to fund the government's 'Lower Fuel Prices' (CPN) program. Finance Minister Andrzej Domański announced that the government has already prepared regulations to reduce indirect taxes, including lowering VAT on gasoline and diesel to 8 percent and reducing excise duties. These measures are expected to result in a significant drop in retail fuel prices, estimated at approximately 1.2 to 1.3 PLN per liter, with reductions potentially appearing at gas stations as early as this weekend.

The President also emphasized that the funds must be used immediately to lower costs for citizens and called for increased fuel rebates for farmers to restore production profitability. While the government anticipates these measures will provide relief, market analysts note that the windfall tax may place significant financial pressure on major energy companies like Orlen.

Entities

Andrzej Domański · Constitutional Tribunal · Donald Tusk · Karol Nawrocki · ORLEN · Paweł Szefernaker · Poland · Radosław Sikorski

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