Poland's Windfall Tax Plan Boosts EUR/PLN Exchange Rate
The Polish government's plan to reintroduce a temporary 60% windfall tax on fuel firms' excess profits has sent the Euro vs Polish Zloty (EUR/PLN) exchange rate higher. The measure, set to run from March to December 2026, aims to raise PLN 4 billion in revenue and help fund efforts to lower fuel prices.
The government's move is expected to impact the EUR/PLN pair due to the zloty's sensitivity to domestic fiscal changes and inflation. The Polish government has previously taken steps to lower fuel prices, including a fuel price-cap program and reduced VAT on fuel.
Technical indicators also suggest strong bullish momentum in the EUR/PLN exchange rate. The pair remains above its 20-day, 50-day, and 200-day moving averages, with near-term resistance at zł4.3654 and immediate support at the week high of zł4.3511.