Poland plans new windfall tax this autumn after president blocks previous bill

The Polish government is determined to implement a windfall tax on the extraordinary profits of fuel and gas corporations, with a new legislative proposal expected this autumn. This move follows the previous bill's rejection by President Karol Nawrocki, who sent it to the Constitutional Tribunal citing serious constitutional doubts, particularly regarding its retrospective application.

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We do not understand this decision of the president and I agree with President (Donald - PAP) Trump, who stated that in situations of energy crises, energy companies generate extraordinary profits through various actions in various fields at the expense of citizens who generate extraordinary (...) losses.

Minister of Energy Miłosz Motyka expressed the government's disagreement with the president's decision, drawing parallels with statements by Donald Trump on energy companies generating excessive profits at the expense of citizens during energy crises. Motyka stated that the ministry is analyzing the current profit margins of these companies to inform the new proposal.

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This is not only a matter of the oil market, but also the gas market, and as a ministry, we are analyzing the situation in terms of how these profits are shaped today within these enterprises.

The proposed tax, initially estimated to yield 4 billion Polish zloty, is intended to finance the "Lower Fuel Prices" package. Motyka indicated that the new legislation would target profits exceeding 20% compared to the previous year and would incorporate some of the concerns raised by the president, assuring that the government would not repeat the exact same project but approach it differently. Additionally, Motyka addressed the issue of fuel stations rapidly increasing prices when wholesale costs rise but slowly decreasing them when wholesale prices fall, suggesting potential legislative measures to regulate this practice.

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In the European Union, various models are being adopted. I do not rule out such action here either.