Polish government wants to tax hydrocarbon extraction at an estimated 40% of the eventual gross profits on extraction, PM's Chancellery head Tomasz Arabski said following Tuesday government sitting which approved assumptions to the hydrocarbons bill.

"The government take on the extraction industry will be about 40% of income, of gross profit," Arabski told a press conference.

That 40% rough estimate is built on a 5% tax on gas extraction, a 10% tax on crude oil extraction, and a 25% special tax based on cash flows designed to target profits on extraction and a PLN 24 per 1000 m3 fee.

That new tax will be applied to "the surplus of revenues over expenses," the cabinet said in its press statement. Arabski said it would apply to "cash flows - as a tax on exceptional profits." As such, "it will only really apply to investors in 10 to 15 years," officials suggested.

Those fees and taxes should go into effect as of January 1, 2015, the official said.Tax receipts will go to the central budget as well as local government budgets.

Poland will additionally create a national operator of hydrocarbons extraction NOKE , an institution that will participate in the supervision of unconventional resources extraction projects via ownership stakes in concessions, the press office wrote.

Existing license owners will have the possibility of inviting NOKE on a voluntary basis to the extraction consortium, the statement also showed.

"What is important for us is how to define the role of the state in the future investment process of extraction and that is why from our point of view what is crucial is creating an institution which under state supervision will be present in the ownership oversight via shares in strictly production enterprises," PM Donald Tusk said during a press conference.