Polish banks fall after government proposes hike to corporate income tax

Powszechna Kasa Oszczednosci Bank Polski SA

22/08/2025 08:23

** Shares in Polish banks fall, with Warsaw's banking index .WIGBANKI dropping as much as 6.5%, after the finance ministry proposed raising corporate income tax (CIT) for the sector

** The ministry proposes to increase the CIT rate for banks to 30% in 2026 and 26% in 2027, before it settles at 23% from 2028, up from the current 19%

** State news agency PAP quoted Deputy Finance Minister Jaroslaw Neneman as saying the hike would finance increased defence spending

** The impact on banks' results could be significant, reaching an average of around 18% in 2026 and 10% in 2027, Erste Securities analyst Lukasz Janczak estimates

** Janczak says the proposal is a negative surprise and completely different from a previously floated, less severe idea of taxing interest from mandatory reserves

** At 0711 GMT, the Polish banking index was down 6%, with PKO BP PKO.WA, Alior Bank ALRR.WA and Pekao PEO.WA tumbling around 7%

(Reporting by Marta Maciag)

((Marta.Maciag@thomsonreuters.com;))