The Czech lower house has approved a proposed 50% tax on refinery margin increases for 2026 and 2027, with the government expecting to raise CZK 5.5 billion in 2026.
The Czech lower house of parliament backed a proposed windfall tax, on 14 October 2026, on the country’s refinery sector.
Lawmakers approved the measure in its first of three readings. The legislation will now move to a parliamentary committee for further review.
Tax terms: 50% of margin gains
The extraordinary tax would apply in 2026 and 2027. It targets companies whose gross margins exceed their 2025 level, taxing 50% of the increase. Poland’s Orlen operates the only refinery in the Czech Republic. The company currently faces this levy as the sole operator in the sector.
Revenue and opposition
The finance ministry projects the tax will raise CZK 5.5 billion in 2026. Orlen has already opposed the measure, as have opposition politicians and the Czech Industry Confederation.
The government justified the proposal by pointing to rising fuel prices driven by global market conditions. Higher refinery margins, the government argued, warrant the extraordinary tax to stabilise public finances.
The bill proceeds through the standard parliamentary process, where it must pass two additional readings before becoming law.
Earlier, the European Commission was considering a bloc-wide windfall tax on oil and gas companies as energy prices rise amid the conflict with Iran. On 12 October 2026, Commissioner Wopke Hoekstra confirmed that a working group would assess the proposal to address exceptional corporate profits as households face higher energy bills.
