Sejm approves legislation on taxing hydrocarbon extraction
July 28, 2014
Sejm, the lower house of Polish parliament, approved a government-proposed bill on taxing hydrocarbon extraction.
The bill, if approved by the Senate upper house and signed by the president, will introduce a 1.5% tax on unconventional gas, 3% tax on conventional gas and unconventional crude oil and 6% tax on conventional oil and a 0-25% special hydrocarbon tax, whose rate will depend on the relation of cumulated revenues and cumulated costs related to extraction.
Poland aims for the tax burden on hydrocarbon extraction to amount to 40% on average, including CIT, real estate tax and local taxes.
According to the bill, the taxes would be introduced in 2016.