FT: Poland: frightening the frackers

There’s a Polish saying about not dividing the skin on a bear – in other words waiting before the animal is caught before planning a warm coat. That’s a saying Poland’s finance ministry might do well to remember as it prepares a new tax regime for the oil and gas industry.

The proposed tax rates have the industry screaming.

Instead of what appeared to be an earlier promise to cap out taxes at about 40 per cent, the new rate looks to be closer to 60 per cent, according to PGNiG, the former gas monopoly.

The gas company is worried that the taxes it would have to pay by 2016 would be 1.2bn zlotys ($382m) higher compared to the company’s current payments.  MORE