Polish government adopts shale gas exploration law
22:49
Polish government has adopted a set of regulations concerning hydrocarbon extraction and taxation, announced PM Donald Tusk, adding that extraction of shale gas will be tax-free until 2020. After that the tax burden will not exceed 40 percent of income.
That burden on shale gas would include a 1.5 percent royalty tax per cubic meter of extracted gas regardless of extraction costs, an up to 25 percent tax on positive cash flows as well as the corporate income tax, Tusk announced.. The tax on positive cash flow will depend on the level of costs and revenues. If the profit is miniscule the company won’t pay it at all.
Poland estimates total budget receipts on account of these two taxes in 2020-2029 at PLN 10.0-16.1 billion.
The government has also decided to scrap the idea of calling up the National Energy Resources Operator (NOKE), a state-controlled body which would hold stake in all Polish shale gas licenses. Instead it will introduce single extraction and exploration permits.
PM Tusk hopes that the bill will be sent to parliament within two weeks.
