JSW coal reapplies to Poland's climate ministry for solidarity contribution refund

"This is in response to the decision of MKiS, which refused to initiate proceedings on this issue in June. In the company's view, the topic requires reconsideration by an authorised administrative body," JSW said in the market filing.

In April, JSW applied to the climate ministry for a refund of PLN 1.6 billion (EUR 376.5 mln) paid in 2023-2024 as part of the so-called solidarity contribution to support the Polish electricity recipients. MKiS refused to initiate proceedings in the case, arguing that the authority is not competent to assess the law's compliance with the Polish Constitution and this is the exclusive prerogative of the Constitutional Tribunal.

As a result of the introduction of the so-called solidarity contribution within the windfall tax by the law of October 27, 2022, on extraordinary measures to reduce the level of electricity prices and support for certain consumers in 2023, JSW paid PLN 1.6 billion (EUR 376.5 mln) to the state budget in 2023-2024.

In April, the company requested repayment of these funds, arguing that the legislation violated fundamental principles of national and EU law, including the prohibition of retroactivity, the principle of equality before the law and the fairness and universality of taxation.

Moreover, as the company explains, the payment of the levy resulted in double taxation of income for 2022 - first with CIT and then with a 25 percent solidarity contribution.

"Furthermore, contrary to the law's assumptions, the company was not the beneficiary of windfall profits from the energy market but incurred significant costs due to the high prices of electricity, which it consumes significant amounts in its production processes," JSW stressed.

JSW highlighted that the recovery of the solidarity contribution is an important element in stabilising the group's financial position in the coming months and years.

pel/ ao/