Key facts
- Poland approved a 60% windfall tax on fuel companies that benefited from high energy prices.
- The tax applies to profits earned between March and December 2026.
- The government expects to raise approximately $1.1 billion from the levy.
- Excess profits are defined as margins exceeding the 2025 average by over 20%.
- Orlen, a state-controlled energy giant, is expected to bear the largest portion of the tax.
Poland's government has approved a one-off windfall tax targeting fuel companies that profited from soaring energy prices amid the U.S.-Iran-Israel war and the closure of the Strait of Hormuz. The proposed levy, set at 60% of excess profits earned between March and December 2026, aims to help the state recover billions spent on subsidies to protect consumers from higher fuel costs.
The Polish Finance Ministry estimates the measure will generate approximately 4 billion zloty, equivalent to about $1.1 billion. Excess profits are defined as fuel sales margins that exceed a company's average 2025 margin by more than 20%, distinguishing profits from geopolitical supply shocks from improved business performance.
State-controlled energy giant Orlen is anticipated to bear the largest portion of this tax burden, estimated at around 60% of the total projected tax base. This initiative follows months of emergency measures by Warsaw, including temporary reductions in VAT and excise duties on fuels and price controls, which cost the government an estimated $435 million per month.
Despite the governing coalition's parliamentary majority, the legislation faces a significant political hurdle: it requires the signature of President Karol Nawrocki, an opposition ally known for blocking government fiscal proposals. The tax rate was reduced from an initial 75% proposal after industry groups warned that the higher rate could push the effective tax burden on some companies to nearly 94%.