Poland prepares a new attempt to introduce a windfall tax on oil traders

The Polish government has returned to the idea of introducing a 60% tax on the windfall profits of fuel companies after the previous law was effectively blocked by President Karol Nawrocki. The draft was again added to the agenda of the Council of Ministers for September 15 amid a new rise in fuel prices.

This is according to the agenda of the Polish government meeting and reported by Polish media.

It concerns a temporary windfall tax for companies that produce liquid fuel or import and trade it from abroad.

The proposed rate is 60%, but it will not apply to the entire profit of the company.

To determine the windfall profit, the company's actual income from fuel sales should be compared with a reference level of income calculated based on the company's average margin in 2025, increased by 20%.

Only the excess over this reference indicator will be taxed. The Polish government explains this construction by the desire not to tax normal business growth, investments, and standard market fluctuations.

The tax is planned to cover extraordinary income received in the period from March to December 2026.

The Polish authorities link its introduction to a sharp increase in world oil and fuel prices due to the conflict in the Middle East. In the government's view, some companies receive additional income not as a result of increased efficiency or new investments, but because of an external price shock.

According to preliminary estimates by the Polish Ministry of Finance, the tax was expected to bring about 4 billion zlotys to the state budget.

The government planned to use these funds to finance measures to curb fuel prices for households and businesses, including the CPN program - Ceny Paliwa Niżej.

This is already the second attempt by the Polish authorities to launch the mechanism.

The first draft law was approved by the government in June. After passing the Sejm and Senate, the document was sent to the president on July 3.

On July 24, President Karol Nawrocki did not sign the law and sent it for preventive review to the Constitutional Tribunal. Because of this, the document did not enter into force.

One of the president's main objections was the retroactive nature of the tax. The law was to be introduced after the start of the period for which companies would be assessed obligations - from March 2026.

Nawrocki also warned that fuel companies could pass the additional tax burden onto consumers through higher prices at gas stations.

The Polish government disagreed. Finance Minister Andrzej Domański stated that the tax blockade caused the budget to miss about 4 billion zlotys, which were planned to be used to support drivers.

The return to the tax comes amid another spike in oil and fuel prices. The government has come under pressure due to increases at gas stations, while the opposition PiS proposed to reduce VAT on fuel until the end of the year.

Previous stages of the government's fuel price containment program have already cost the Polish budget about 5.2 billion zlotys. The main CPN program cost about 4.7 billion zlotys, and temporary restoration of tax breaks in August cost about 495 million zlotys.

The consideration of the windfall tax draft is the first item on the agenda of the Council of Ministers meeting on September 15. Therefore, it currently concerns the resumption of the government's attempt to introduce the tax, not its entry into force.

Based on materials from: Business Insider Polska, Polish government, Money.pl