Poland adopts 60% windfall tax on fuel firms to fund subsidies

Poland's lower house approved a law imposing a 60% windfall tax on the extraordinary profits of fuel producers and importers for the period March‑December 2026. The measure, passed by a 231‑201 vote, is expected to raise about €950 million (roughly 4 billion zł) and will finance a consumer‑focused energy subsidy package and compensate for lower VAT and excise rates on fuels under the CPN programme. It targets roughly 20‑30 companies, with state oil group Orlen estimated to account for around 60% of the tax base. The tax applies to profit margins exceeding 20% above the 2025 average and is justified as a response to “exceptional geopolitical conditions” following the Iran‑related oil market turmoil that drove global fuel prices higher. The bill now moves to the Senate for further consideration.