Czech lower house gives initial backing to windfall tax on refinery sector

PRAGUE, Oct 14 (Reuters) — The Czech lower house gave initial backing to an extraordinary tax on the refining sector to be applied in 2026 and 2027 and set at 50% of the increase in gross margins versus 2025. Lawmakers voted on the proposal of a windfall tax on the sector in the first of three readings late on Tuesday, and the legislation now goes to a parliamentary committee The tax is expected to apply to the sole operator of Czech refineries, Poland's Orlen Orlen, opposition politicians and the country's Industry Confederation have opposed the measure The government says it is needed due to the increase in refineries' margins because of the situation in global markets, which has raised fuel prices The finance ministry expects to raise 5.5 billion crowns ($253.08 million) for the budget from the proposed extraordinary tax on refineries in 2026 ($1 = 21.7320 Czech crowns) (Reporting by Jason Hovet;Editing by Elaine Hardcastle) ((jason.hovet@thomsonreuters.com;)