The new tax on excess profits will apply to fuel producers, but also to importers and buyers of fuel from the EU. The initial version of the project was very restrictive. After consultations, it was slightly relaxed, but only partially responds to the companies' demands. During consultations, some organizations pointed out that the rate of 75 percent is disproportionate and too high. Especially since companies also have to pay 19%. CIT. The Ministry of Finance took into account some of the comments (including those submitted by Orlen and Lewiatan). The tax rate has been reduced, but it is still high – it is expected to amount to 60%. from “excess profit”.
On Thursday, the Standing Committee of the Council of Ministers adopted the draft in the latest version from June 10, without any discrepancies. – However, there is no decision yet when he will appear in the government, or perhaps next week – a source close to the government tells us.
However, since there are no longer any disputes about the project, it should quickly be discussed by the Council of Ministers.
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What has changed in the excess profits tax project
The new version of the project (list number – UD411) provides for several fundamental changes:
— the tax rate was reduced from 75%. up to 60 percent, which means lower revenues (in 2026 they will amount to PLN 3.8 billion, not PLN 4.75 billion as originally planned, and in total this and next year – PLN 4 billion, not PLN 5 billion),
— the catalog of costs taken into account when calculating margins has been expanded,
— heating oils (light and heavy fuel oil) were excluded from tax (they will not be covered by the definition of “liquid fuels”), similarly to lubricants and semi-finished products (the regulations have been clarified),
— it was clarified that all sales of liquid fuels by the taxpayer in Poland will be taken into account for tax calculation (also when the fuel was purchased in Poland),
— provisions have been added regulating the rules for tax overpayment from excess profits, the deadline and rules for its return and the interest rate,
— the deadline for payment of the first tax advance was postponed by a monthand its payment was divided into parts.
The Ministry of Finance also notes that the effective tax rate on all extraordinary income will be lower than 60%.
What company demands regarding the tax on excess profits were rejected by the Ministry of Finance?
The Ministry of Finance rejected the demands of some companies, to abolish the tax on excess profits altogether. Such a request was submitted, among others, by: Polish Organization of Oil Industry and Trade (POPiHN), Staszic Institute.
In POPiHN's opinion, the proposed tax may pose a threat to the financial situation of some enterprises and limit investments. It may also result in a threat to the country's fuel security in both the short and long term.
Ministry of Finance it also did not agree to reduce the tax rate to 33%. According to POPiHN, the rate should be 33%.because this was the amount of the solidarity contribution imposed on companies operating coal in 2022, when fuel prices also increased significantly as a result of the outbreak of the war in Ukraine.
Tax rate reductions to 33%. ANWIM, Unimot Paliwa, Danske Gas and Citronex Trans Energy also demanded. They pointed out that the tax on excess profits is to occur in parallel to the standard CIT (19%). In total, total taxation would be 94%. (originally planned rate of 75% + 19% CIT), which would constitute actual confiscation of assets. According to the companies, the rate consistent with the requirements of the constitution should be a maximum of 33%.
The Ministry of Finance also did not agree to the companies' demands increase the reference margin from 20%. up to 30 percent
The ministry also did not agree with the allegations that the new tax is contrary to the constitutional principles of non-retroactivity and non-introduction of new taxes during the year (such comments were submitted by POPiHN, ANWIM, Unimot Paliwa, Danske Gas, Citronex Trans Energy, Aramco Fuels Poland).
POPiHN also wanted the tax on excess profits not to cover foreign sales (export) of fuels produced in the country. The ministry did not agree to this. It explained that the intention is to tax windfall profits generated by taxpayers regardless of where fuel is sold.
