Profil:
KGHM Polska Miedź SAPoland adopts amendment to certain minerals extraction tax act and hard coal mining act
The Polish government has adopted a draft act amending the tax act on the extraction of certain minerals, which aims to reduce the tax burden on copper producers, government spokesman Adam Szlapka told a press conference on Tuesday. The government has also adopted draft amendments to the act on the functioning of hard coal mining and the PIT act, which provide for the restructuring of the sector.
As previously reported, the draft amending the tax act on the extraction of certain minerals prepared by the Ministry of Finance aims to reduce the tax burden on copper producers in order to enable the implementation of investment plans related to the role of copper in the transformation of the economy as a key product for clean energy technologies.
The proposed changes are to be implemented in stages. In 2026, the coefficient of 0.85 in the formula used to calculate the amount of tax due will be reduced to 0.74, while in 2027-2028, it will be lowered further to 0.68.
In the original version of the draft submitted for consultation in July, the proposed coefficients were lower, at 0.71 in 2026 and 0.64 in 2027-2028.
The Ministry of Finance has estimated that, as a result of the proposed changes, taxes on copper and silver mining paid to the state budget will be lower by PLN 0.5 billion (EUR 117.2 mln) in 2026 and by PLN 0.75 billion (EUR 175.8 mln) per year in 2027-2028.
The draft amendment to the act on the functioning of hard coal mining and the personal income tax act is intended to enable companies covered by the support system to carry out the gradual liquidation of hard coal mining plants and to pay social benefits to mining plant employees, which is currently impossible under the current legal framework.
The latest regulatory impact assessment estimates that the cost of closing down hard coal mines over the next 10 years will amount to PLN 11.275 billion (EUR 2.6 bln). Previous versions estimated the cost at PLN 4.182 billion (EUR 980.4 mln) and PLN 9.125 billion (EUR 2.1 bln), respectively.
tus/ han/ ao/