Tusk Slams President Nawrocki’s “Shocking Decision” to Block Fuel Tax Law

Polish Prime Minister Donald Tusk has strongly criticized President Karol Nawrocki for sending the windfall tax bill on fuel companies to the Constitutional Tribunal, urging citizens to remember the move at fuel pumps.

Presidential Referral to the Constitutional Tribunal

On Friday, July 24, Karol Nawrocki referred the windfall tax bill on fuel companies to the Constitutional Tribunal under preventive control. The president indicated he would not sign a law plagued by serious constitutional doubts. Pointing out that the law was scheduled to enter into force in August while the tax would apply to income earned since early March, the president’s office stated this represents an attempt to tax activities retroactively.

Nawrocki argued that the new tax does not lower fuel prices but primarily aims to supply money to the budget, warning against masking state financial patches as consumer protection while leading to price hikes. He stated he is defending competition, consumers, and small- and medium-sized enterprises since the law also affects smaller, independent fuel firms.

Government Reactions from Tusk and Domański

On Saturday, July 25, Donald Tusk reacted on platform X, calling it a shocking decision that blocked a law allowing the taxation of giant fuel corporation profits to finance cheaper fuel at stations through the CPN program. Finance and Economy Minister Andrzej Domański also criticized the step, emphasizing that blocking the law deprived the state budget of 4 billion PLN intended for a protective package against high fuel prices.

Domański evaluated that President Nawrocki sided with highly profitable fuel corporations instead of Polish citizens, further striking at public finances by sending the bill to a tribunal whose operation he had previously paralyzed.

Details of the Windfall Tax Legislation

According to the legislation, the tax rate is set at 60 percent, with the tax base consisting of revenue surplus over what a taxpayer would achieve using a reference margin. The reference year is the financial year ending before March 1, 2026, and the reference margin is the average liquid fuel sales margin in 2025 increased by 20 percent.

Revenues from the new levy are intended to partially compensate for budget revenue losses resulting from reduced VAT rates on fuel to 8 percent and minimal EU excise duty cuts under the “Lower Fuel Prices” (CPN) shield package. Producers and sellers of liquid fuels are to pay a total of 4 billion PLN in windfall taxes, with 3.8 billion PLN due this year and the remainder in 2027, covering approximately 20 to 30 large, medium, and small entities operating in Poland.