Parliament Approves 60% Windfall Tax on Fuel Companies

The Sejm has enacted a 60% windfall tax on fuel producers and importers to finance the “Lower Fuel Prices” program, retroactively applying to profits earned from March 2026.

Legislative scope and tax mechanics

On June 19, the Sejm passed legislation introducing a temporary windfall tax on extraordinary profits within the liquid fuels sector. With a 60% levy rate, the tax targets profits generated between March and the end of 2026, aiming to raise 4 billion PLN for the government’s fuel price support program.

The law applies to large fuel corporations, as well as micro, small, and medium-sized enterprises involved in the production or import of liquid fuels. The Ministry of Finance estimates that between 20 and 30 entities will be subject to the tax, with the largest domestic fuel company expected to shoulder approximately 60% of the total tax burden.

Legal controversies and retrospective application

Although the legislation is set to enter into force on August 1, 2026, it applies to profits recorded retroactively starting from March 1, 2026. This mechanism has triggered significant debate among legal and economic experts regarding the principles of legal certainty and the predictability of the tax system.

Proponents of the measure argue that the exceptional circumstances, driven by volatile fuel prices and geopolitical tensions, necessitate such intervention. The tax base is calculated based on surplus revenues exceeding a reference margin derived from the financial year ending before March 1, 2026, plus a 20% adjustment.

European context and market impact

Poland joins several other nations, including the Czech Republic, Slovakia, and Spain, in implementing windfall taxes on energy and fuel sectors. Czechia’s “war tax,” which operated between 2022 and 2025, served as a key model, successfully generating over 114 billion koruna for the national budget.

While the government maintains that the tax is not a direct levy on motorists, economists warn that companies may attempt to pass on these additional costs to consumers. Ultimately, the impact on pump prices will depend on global oil trends, currency exchange rates, and broader geopolitical developments.