Billion-koruna hit to Czech refineries: government introduces two-year windfall tax

The government has imposed a windfall tax on refineries, which will apply this year and next year. The increased margin compared with 2025 will be taxed. By introducing the sector-specific tax, the government is responding to rising refining margins resulting from disruptions to the global oil market. Tax revenue will help offset the costs of measures through which the government is seeking to respond to rising fuel prices, the Finance Ministry said in a press release today.

The tax will apply to companies whose total annual revenues reach at least two billion koruna and whose revenues from refining activities are at least 50 million koruna a year. It will amount to 50 percent of the increase in gross margin compared with 2025. According to the Finance Ministry, the government was inspired by a similar tax applied in Poland.

According to the Finance Ministry, tax receipts from refinery income generated this year should amount to around 5.5 billion koruna.