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Polish president obstructs windfall tax on fuel firms’ excess profits, prompting government criticism

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Prime Minister Donald Tusk has condemned opposition-aligned President Karol Nawrocki’s “shocking decision” not to sign into law the government’s planned windfall tax on excess profits by fuel companies amid a sharp surge in fuel prices caused by the war in Iran. While Nawrocki did not veto the bill, he exercised his right to refuse to sign it and instead send it to the Constitutional Tribunal (TK) for assessment, a process that can take years. The president argued that the retroactive nature of the tax “raises serious constitutional concerns”.

Nowy podatek nie obniża cen paliwa. Ma przede wszystkim dostarczyć pieniędzy do budżetu. Nie mogę zaakceptować sytuacji, w której próbę łatania finansów państwa przedstawia się obywatelom jako ochronę ich interesów, podczas gdy skutkiem będzie kolejna fala podwyżek – Prezydent… pic.twitter.com/LqI7Cojdrr — Kancelaria Prezydenta RP (@prezydentpl) July 24, 2026 In mid-June, the government approved a 60% tax on excess profits from liquid fuel sales, calculated as the amount that would have been generated using a company’s average 2025 fuel sales margin, increased by 20%.

The measure was expected to raise around 4 billion zloty (€927 million). When announcing the plans, the finance ministry said the levy was justified by this year’s “exceptional economic and geopolitical conditions that have led to above-average financial results in a specific segment of the fuel sector, not resulting from improved operational efficiency…but from a supply shock”. The tax was intended to offset the roughly 4.7 billion zloty the government spent on keeping fuel prices lower for consumers amid the crisis in the Middle East by, among others, cutting VAT and introducing a maximum daily price.

The bill was approved by parliament on 3 July. It received support from Tusk’s ruling coalition, which ranges from left to centre right, but was opposed by the right-wing and far-right opposition. According to a regulatory impact assessment, state energy giant Orlen is expected to account for about 60% of the tax base for the windfall tax, with the remaining 40% generated…

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