Czech lawmakers to debate emergency tax on refinery profit margins

In mid-September the Czech government introduced a draft law proposing an extraordinary tax on the profit margins of large oil refiners, a move defended by Finance Minister Alena Schillerová as aimed at firms benefiting from record-high refining margins. The tax is designed for companies with high overall turnover and sizable refinery earnings, with the taxable base calculated as the gap between sales of own products and the cost of consumed crude.

Officials anticipate that the levy could bring billions of crowns into the state coffers. The legislation is expected to affect only the two domestic refineries in Kralupy nad Vltavou and Litvínov, both operated by Orlen Unipetrol, which argues the tax could jeopardise further development projects and market stability. Schillerová cited Poland’s similar levy as an inspiration and stressed the need for swift approval before companies can engage in tax-avoidance strategies. The parliamentary session to vote on the proposal begins shortly after noon, with extensive opposition speeches anticipated.