Poland weighs VAT cut for fuel, does not rule out windfall tax

WARSAW, March 26 (Reuters) - Poland might cut its VAT on fuel to lower prices at the petrol pump, the country's finance minister said on Thursday, adding that a windfall tax on excess profits at oil companies had not been ruled out.

Countries across Europe have been scrambling to mitigate the impact of the war in the Middle East on fuel costs and regional peers like Romania and Hungary have already moved to cap prices.

"The government is working to lower prices at petrol stations," he said. "Reducing VAT is one of the solutions being analysed in detail; it is a likely solution."

Asked whether the government was planning a windfall tax for oil companies, Domanski said that work on such a law was not currently underway, but it was a possibility if an analysis showed that some companies had high profits due to current market conditions.

"We are not ruling out a tax on excess profits," he said.