Nawrocki Suspends Windfall Tax as Case Heads to Court

Polish President Karol Nawrocki announced that he will refer the law introducing a special tax on the profits of oil and gas companies to the Constitutional Tribunal for review. His main objection concerns the law's retroactive effect, as the tax would also apply to revenue earned since March 2026.

The bill, approved by parliament, calls for a 60% tax on revenue from fuel sales that exceeds the previous year's average by more than 20%.

The measure could raise roughly 4bn zlotys ($1.05bn)  for the state. Nawrocki also warned that energy companies could pass the new costs on to consumers through higher fuel and energy prices.

According to Nawrocki, business owners must know the applicable rules before making their economic decisions.

The country's constitutional court will now decide the law's fate, as it cannot take effect without the president's signature.

(Reuters, mja)