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Tax on excess profits of companies – Jacek Sasin, Deputy Prime Minister, head of MAP, on the work on the project

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We are working on a tax on excess profits from mining and fuel companies, said Deputy Prime Minister and head of the Ministry of State Assets Jacek Sasin. He added that investment plans related to the energy transformation should be taken into account.

Sasin, when asked on Radio Plus whether there will be a tax on excess profits, replied: – There will be, we are working on it. At the same time, he argued that energy companies have practically already been deprived of excess profits, as they will cover the cost of freezing regulations energy prices.

– There is the issue of mining companies, because some of these companies have earned a lot from the strongly growing price of coal. This is mainly coking coal. JSW’s profits were record-breaking last year and promise to be record-breaking this year. And there is the issue of Orlen, i.e. crude oil processing, said Sasin.

Tax on excess profits – work on the project

As he informed, the work is underway at the Ministry of Climate, in cooperation with the Ministry of Finance and the Ministry of State Assets. – We are working on creating a mechanism that would equalize these disproportions, i.e. profits that result not from the expansion of activities, but from price increases – said the Deputy Prime Minister.

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He added that the solutions will be announced soon, the project may be ready in March. – Probably, I do not want to prejudge it, these solutions will also cover the previous year – said Sasin.

– Let us remember that we cannot shear these companies like sheep, to the bare skin, because we also need investments. Orlen intends to invest huge amounts of money in, for example, offshore. (…) If we want the energy transformation, huge funds must be invested. (…) We have to balance – added the Deputy Prime Minister.

Prime Minister on excess profits tax

Prime Minister on Tuesday Mateusz Morawiecki asked at a press conference about the tax on excess profits, he stated that in accordance with the mechanism introduced by the government, Polish companies allocate tens of billions to reduce energy bills of recipients.

He added that “companies can be taxed with a special tax on windfall profits and then allocate this money from the budget to lowering energy prices.” – We decided on such a mechanism, only implemented in a different way – the revenue cap mechanism – he noted.

– It consists in the fact that these companies take the funds they have earned and allocate them to lowering the prices of gas, heat and electricity. These are tens of billions of zlotys that both Orlen and energy companies allocate to reduce our bills. We have money from companies that are indirectly taxed in this way. They contribute to lower gas prices, lower heat and electricity prices – added Mateusz Morawiecki.

Profits of Orlen and JSW

In 2022, the Orlen Group generated sales revenues of over PLN 278 billion. The net profit amounted to nearly PLN 35.5 billion, while a year earlier it was about PLN 11.2 billion, according to the report published by the company.

In the fourth quarter of 2022, the Orlen Group generated revenues of PLN 102.3 billion, EBITDA LIFO of PLN 16.1 billion and net profit of PLN 8.1 billion.

As for JSW, data for the first 9 months of 2022 are officially available for now. The company’s financial statements show that in the first three quarters of 2022, the company had approx. PLN 6.3 billion of consolidated net profit (approx. PLN 104 million loss in the corresponding period of 2021), with sales revenue of approx. PLN 16 billion (approx. PLN 6.8 billion in 2021).

Main photo source: PAP/Marcin Obara

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