Sejm's constitutional concerns over new Polish fuel tax

Poland's new fuel tax, intended to bolster the state budget, faces significant constitutional challenges, according to the Sejm's legislative office. The tax targets fuel producers and importers who have seen "extraordinary" profits due to market destabilization following the conflict in the Middle East.

The proposed levy, initially set at 75% but reduced to 60% after public consultations, applies to revenue exceeding a reference margin. This reference margin is based on the average fuel sales margin in 2025, increased by 20%. The government aims to collect 4 billion Polish zloty from this tax, with 3.8 billion zloty expected this year and the remainder in 2027. These funds are meant to compensate for budget revenue lost from a reduction in VAT on fuel to 8% and excise duties to minimal EU levels.

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The project's law acts retroactively, and such action is inconsistent with the constitution. It is possible to allow retroactive law only when it benefits the party. This is our most serious charge.

Industry representatives have voiced strong opposition. Dr. Leszek Wiwała, president of the Polish Oil Industry and Trade Organization (POPiHN), argued that the bill's retroactive application, taxing profits from March while the law is being considered in June, violates the constitution. He stated, "The project's law acts retroactively, and such action is inconsistent with the constitution. It is possible to allow retroactive law only when it benefits the party. This is our most serious charge."

Krzysztof Rutkowski, chairman of the supervisory board of Polska Grupa Paliwowa, echoed these concerns about the retroactive taxation. Deputy Minister of Finance and Economy Jarosław Neneman defended the proposal, stating that companies without extraordinary profits would not be taxed. However, the Sejm's legislative office has also noted constitutional doubts regarding the regulation, particularly its compliance with Article 2 of the constitution.

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If there are no extraordinary profits among the entrepreneurs importing fuel, then they will not pay any tax.