Poland’s proposals to increase taxes on oil and gas will result in reduced exploration, the Polish Exploration and Production Industry Organization said.
The nation’s plans will limit scope for joint ventures and don’t take into account the level of investment needed, according to Marcin Zieba, general director of the group that represents Chevron Corp. (CVX), Talisman Energy Inc. (TLM) and PKN Orlen SA.
Poland’s government proposed new levies last month on hydrocarbon production totaling about 40 percent of profit starting in 2015. Plans include a charge of 5 percent of the value of extracted natural gas and 10 percent of oil plus taxes on profits of 25 percent and fees to the regional authorities.
“Proposed levies in addition to corporate income tax will substantially exceed the 40 percent declared by the government and may slow and curb exploration,” Zieba said in an e-mail today.
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