Poland plans to introduce a windfall tax on oil and gas companies next week to help finance fuel tax cuts implemented to shield consumers from rising energy costs linked to the Iran conflict, a senior government official said on Wednesday.
State Secretary for Energy Wojciech Wrochna told Reuters the proposed measure would target excess profits generated by oil, refined products, and potentially natural gas producers benefiting from recent price surges triggered by instability in the Middle East.
The Polish government said revenue from the levy would compensate for lower budget income resulting from temporary reductions in VAT and excise duties aimed at easing household fuel expenses.
According to Wrochna, the tax cuts currently cost the state around 1.5 billion zlotys ($352.7 million) per month, making additional funding measures necessary to sustain relief programmes.
The proposal comes as major energy companies have reported strong earnings, with elevated profits linked to higher commodity prices following geopolitical disruptions.
Poland is still determining how to define “windfall profits,” with one option involving comparisons between current revenues and historical performance levels.
Wrochna acknowledged resistance from affected firms but argued the extraordinary market conditions had produced gains considered disproportionate and therefore suitable for taxation.
The initiative aligns with broader discussions across Europe, where some governments have pushed for region-wide levies on excess energy profits, although the European Union has so far avoided introducing bloc-wide measures over legal concerns.
If approved, Poland’s tax would represent one of the latest national efforts to redistribute unexpected energy-sector gains toward consumer protection measures.
The proposal underscores growing pressure on European governments to balance fiscal stability with support for households facing elevated fuel and energy costs.