#AceFinanceNews The Polish government said it will offer 6-year tax breaks for shale gas companies in an effort to fast track investment and exploration.
The announcement comes as energy tension with Russia run high over Ukraine.
The new tax break is aimed at helping Poland attract foreign companies to explore and invest in the country’s shale oil reserves, believed to be the largest in Europe, according to data by the US Energy Information Administration.
The tax break will be “a huge incentive” to get investors interested and on the ground, Prime Minister Donald Tusk said on Tuesday, adding that by 2020 taxes “should not exceed 40 percent of extraction income.”
Between 2020-2029, the new incentives will contribute up to $5 billion in revenue, according to Tusk.
The proposal will be sent to parliament within two weeks, and the prime minister hopes it will pass without any hiccups.