Litvínov, 2006
Litvínov, 2006Photo: Lawa na projektu Wikipedie v jazyce němčina, 2006 · public domain · Wikimedia Commons
Litvínov, 2006
Litvínov, 2006Photo: Lawa, German Wikipedia project, 2006 · public domain · Wikimedia Commons

Litvínov is a town in the Ústí nad Labem Region. In its local part of Záluží, the company Orlen Unipetrol operates a refinery and petrochemical production complex [1].

Extraordinary tax on refinery margins

On 13 October 2026, the Chamber of Deputies began debating a government proposal for an extraordinary tax on rising refinery margins, which, according to sources, is likely to apply to only two companies in Czechia — the refineries in Litvínov and in Kralupy nad Vltavou [1][2]. Both refineries are owned by Orlen Unipetrol [1][2].

Finance Minister Alena Schillerová justified the proposal by saying it concerns a sector that is profiting from a global increase in refinery margins, which she said are at record levels [2]. She said the government wants to pass the tax by the end of 2026 as a priority, since the profits arose this year, and it does not want to leave room for tax optimization [2][3]. According to her, the government was inspired by a similar tax in Poland, where the rate is 60 percent [2][3].

According to government estimates, the tax could bring between CZK 5.5 and 9 billion into the state budget this year [1][4]. Under the proposal, the tax would apply to companies with total annual revenues of at least CZK 2 billion that also have revenues from refining activity of at least CZK 50 million a year [1][2]. The tax base would be calculated as the difference between revenues from the sale of own products and the costs of the crude oil consumed [1][2].

Orlen Unipetrol stated that the tax endangers further investment in the development of Czech refineries and the stability of the fuel market [1][2]. The Confederation of Industry and Transport called on the government to abandon the plan or at least soften its parameters [1]. The opposition ODS considers the proposal controversial, arguing that it could lead refineries to pass higher costs on to prices [1]. The opposition movement STAN does not criticize the taxation of refineries as such, but its representatives say it is necessary to ensure that the tax actually brings money into the budget [1].

Chronology

  • — The Chamber of Deputies began debating a government proposal for an extraordinary tax on rising refinery margins, which would mainly affect the companies in Litvínov and Kralupy nad Vltavou. → Czech News Agency / České noviny iDNES.cz

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Chronology

  • — The Chamber of Deputies began debating the government's proposal for a windfall tax on refineries' rising margins, which would mainly affect the plants in Litvínov and Kralupy nad Vltavou. → ČTK / České noviny iDNES.cz

Pages linking here

Sources

  1. ČTK / České noviny — 13 October 2026
  2. iDNES.cz — 13 October 2026
  3. Lidovky.cz — 13 October 2026
  4. ČT24 — 13 October 2026