Poland's Sejm approves windfall tax on fuel companies for second time

Poland's Sejm has once again passed a law on a windfall tax on fuel companies, the proceeds of which the government wants to channel into financing the fuel price reduction program Ceny Paliwa Niżej. 237 deputies voted for the document, 202 against, and one abstained. The law now needs to be considered by the Senate.

This is the second attempt by the Polish authorities to introduce a so-called windfall tax for the fuel sector. The previous version of the law was finally passed by parliament in July, but President Karol Nawrocki did not sign it and sent it to the Constitutional Tribunal for preventive review. The President's office then expressed doubts because the tax was to be levied for a period before the law entered into force.

During the new consideration, the Sejm supported amendments that extend the tax calculation period: it should now cover windfall profits earned from March 2026 to March 2027. The original government draft provided for it to apply only until the end of December 2026.

Under the government model, the rate is 60% of the windfall profit. To determine the base, the company's actual results are compared with the margin level of 2025 increased by 20%. Only the excess above this level should be taxed. The Polish Ministry of Finance estimated potential revenue at about 4 billion złoty.

The tax applies to companies that produce fuel or engage in its foreign trade. The authorities link the need for an additional levy to a sharp rise in world oil and fuel prices due to the crisis in the Middle East.

Prime Minister Donald Tusk stated that after the law takes effect, the government plans to restore the Ceny Paliwa Niżej program. Under this program, the state already temporarily limited prices for gasoline and diesel at Polish petrol stations in August.

Sources: RMF24, Sejm of Poland, Ministry of Finance of Poland