Polish Parliament Approves Windfall Tax on Fuel Companies to Recover Lost Revenue

Poland's parliament, the Sejm, has passed a new windfall tax targeting extraordinary profits in the fuel sector. The legislation, approved by 231 votes to 201, aims to recoup billions of zlotys lost by the government due to a reduction in fuel VAT and excise duties. The bill now moves to the Senate for further consideration.

The government introduced the tax as a response to rapidly increasing margins in the fuel industry since March 2026. This new levy, known as a windfall tax, will affect fuel producers and importers who have seen unusually high revenues. These gains are attributed to market destabilization following the outbreak of conflict in the Middle East.

The tax rate is set at 60% of profits exceeding a reference margin. The reference margin is calculated based on the average fuel sales margin in 2025, increased by 20%. This measure is projected to generate approximately 4 billion zlotys, with 3.8 billion zlotys expected this year and the remainder in 2027. The revenue is intended to compensate for an estimated 4.8 billion zloty revenue shortfall in the first three months of the year, caused by lowering VAT on fuels to 8% and reducing excise duties to minimum EU levels.

The new tax will apply to entities involved in fuel production and foreign trade, including importers and those acquiring fuels within the EU. It covers large corporations as well as micro, small, and medium-sized enterprises, with an estimated 20-30 entities falling under its scope. Primarily, the tax will apply to revenues from the sale of motor fuels and diesel oils, excluding heating oils and fuel blending processes. Orlen is expected to bear 60% of the tax burden, with other market participants accounting for the remaining 40%.