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Polish president says he signed windfall tax bill - Finance news and analysis from Global Banking & Finance Review
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Polish president says he signed windfall tax bill

Published by Global Banking & Finance Review

Posted on October 2, 2026

2 min read

· Last updated: October 2, 2026

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Polish President Approves Windfall Tax on Energy Firms to Lower Fuel Prices

Overview of Poland's Windfall Tax Legislation

WARSAW, Oct 1 (Reuters) - Polish President Karol Nawrocki said on Thursday evening he signed a windfall tax bill, which will be imposed on energy companies.

Details of the Windfall Tax Bill

  • The Polish parliament approved the bill to tax windfall profits generated by oil and gas companies which have benefited from surging margins amid supply shocks due to the Middle East war
  • The bill assumes that 2026 revenues on sales of fuels exceeding the previous year average by 20% would be taxed at 60%

Government Plans for Tax Revenue

Prime Minister's Statement

Prime Minister Donald Tusk said that if the bill becomes law, he would use the proceeds to lower fuel prices at the pump

Finance Minister's Projections

Finance Minister Andrzej Domanski said that the legislation would be published on Friday and that fuel prices at service stations would drop by 1.2–1.3 zlotys ($0.3086-$0.3344) per liter as early as the weekend

Duration of Lower Fuel Prices

He added on X that he would like the lower-price programme to remain in place "at least until the end of this year"

Legal and Constitutional Considerations

Nawrocki referred a previous version of the bill to the country's constitutional court, pointing to concerns about its retroactive nature and potential effect on consumers

Additional Information

($1 = 3.8881 zlotys)

(Reporting by Anna Wlodarczak-Semczuk and Alan Charlish; Additional reporting by Pawel Florkiewicz; Editing by Jacqueline Wong)

Key Takeaways

  • The windfall tax targets extraordinary profits from March–December 2026, taxing only revenue above a 2025 benchmark raised by 20%, at a 60% rate.
  • Proceeds—estimated at around PLN 3.8–4 billion—will fund fuel price cuts under the 'Ceny Paliw Niżej' programme to ease burden on consumers.
  • President Nawrocki had earlier referred the bill to the Constitutional Tribunal over retroactivity concerns; the latest version has now been signed into law.

Frequently Asked Questions

What is the purpose of Poland's new windfall tax bill?
The bill imposes a 60% tax on excess profits from fuel sales by energy companies, with proceeds intended to reduce fuel prices.
When will the windfall tax be applied to energy companies?
The tax will apply to 2026 revenues from fuel sales that exceed the previous year’s average by 20%.
How much could fuel prices drop due to the new tax?
Fuel prices at Polish service stations are expected to drop by 1.2–1.3 zlotys ($0.3086-$0.3344) per liter as early as the coming weekend.
Who will benefit from the windfall tax revenues in Poland?
Polish consumers are expected to benefit, as the government plans to use the revenues to lower prices at fuel pumps.
What concerns were raised about previous versions of the bill?
President Nawrocki referred an earlier version to the constitutional court due to concerns over its retroactive nature and potential impact on consumers.

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