Windfall Tax Bill Returns to Sejm Following Senate Amendments

The bill imposing a windfall tax on fuel companies heads back to the Sejm after the Senate approved amendments that would cap tax liabilities based on taxpayer income.

Senate Intervention and Tax Caps

The Senate voted 54 to 28 in favor of the bill with proposed modifications. The amendments aim to limit the tax amount to the level of income established for personal or corporate income tax purposes, or to the balance-sheet profit in the case of general partnerships.

Government Response to Market Volatility

The legislation acts as a government response to a sharp increase in fuel sector margins starting in March 2026. The windfall tax targets producers and importers who realized excess profits due to energy market instability following the conflict in the Middle East.

Tax Mechanics and Reference Periods

The tax rate is set at 60 percent. The base is the revenue surplus exceeding the amount that would have been achieved using a reference margin, defined as the average liquid fuel sales margin in 2025 increased by 20 percent. The reference year is the fiscal year ending before March 1, 2026.

Fiscal Impact and Revenue Goals

The measure is expected to generate 4 billion PLN to help finance the “CPN” fuel price reduction package ending in July. This revenue aims to compensate for the 4.8 billion PLN loss incurred by reducing fuel VAT to 8 percent and lowering excise taxes to EU minimums.

Scope of the New Levy

The tax applies to entities involved in the production and foreign trade of liquid fuels, including imports or intra-Community acquisitions. The regulation, affecting approximately 20 to 30 entities ranging from large corporations to small businesses, excludes heating oils and household consumers.