Profil:
KGHM Polska Miedź SAUPDATE: Poland to reduce so-called copper tax from 2026; costs at PLN 10 bln in 10 years - FinMin
The cost to the budget of reducing the so-called copper tax is PLN 500 million (EUR 117.8 mln) in 2026, PLN 750 million (EUR 176.7 mln) in 2027 and PLN 750 million (EUR 176.7 mln) in 2028, Poland's finance minister Andrzej Domanski told a press conference. As he pointed out, after 2028, the changes also assume a mechanism for deducting from tax the costs incurred for capital expenditures. Over 10 years, the cost to the budget from the changes is expected to reach PLN 10 billion (EUR 2.36 bln).
"The amount of the tax currently depends on the amount of copper extracted and the average copper price in a given month (...) The current structure of the tax and its amount makes the fiscal burden paid by copper mining companies in Poland a significant obstacle to new investments, the possibility of creating new jobs, new mining capacities," Domanski stressed.
"That is why we are proposing to reduce the coefficient in the first three-year period, in the formula from 0.85 to 0.71 in 2026, and to 0.64 in the next two years. According to our estimates, this means that revenues from this tax, and thus the burden on entities, will fall by about PLN 500 million in 2026, and by PLN 750 million in the next two years," he added.
Poland's finance minister pointed out that the changes also include a mechanism for deducting costs incurred for capital expenditures from the tax. As he assessed, revenues from this tax would be lower by PLN 10 billion (EUR 2.36 bln) over 10 years.
"After 2028, we are proposing a mechanism to deduct a part of taxpayers' capital expenditures. These capital expenditures that will be deductible, will be included in the law," he explained.
"Eligible expenditures already incurred by taxpayers from the entry into force of the law will be included in the calculation. That is to say, we are planning from 2026 onwards. Our idea is to get these investments going already, even though this mechanism will take effect after three years," the minister added.
Domanski said that the deduction would be possible up to a certain limit.
"(...) we propose 50 percent of the eligible investment expenditure. And the amount not used in a given year will be deductible in subsequent years," he added.
"We estimate that on the basis of this mechanism, i.e. these first three years, and the introduction of qualified investment expenditure costs, there will be 10 billion PLN less in tax revenue over 10 years," the finance minister concluded.
pat/ ao/
