Polish president backs down and approves government’s windfall tax on fuel companies
The government immediately moved to reintroduce subsidies on fuel prices for consumers.
Polish President Karol Nawrocki has halted his opposition to a government-backed windfall tax on fuel companies, reversing his previous stance. The contentious legislation, aimed at offsetting costs related to fuel price stabilization measures during geopolitical crises, will now be enacted. Nawrocki, who initially sent the bill to the Constitutional Tribunal for review due to constitutional concerns, declared on Thursday that he would sign the law, despite still seeking an assessment of its constitutionality.
The tax will levy a one-time 60% charge on excess profits from liquid fuel sales in 2025, generating approximately 4 billion zloty (€914 million) in revenue. The government plans to reduce VAT on fuels from 23% to 8% and cut excise duty as part of the legislative package, measures that will remain in effect until the end of the year.
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