Polish Fin Min Says March Copper Tax Deadline Will Be Tight - Report
11 Januar 2012 - 3:03PM
Dow Jones News
The Polish Finance Ministry's plan to have a proposed tax on
copper and silver extraction go into effect Mar. 1 is a tight
deadline, state-owned news agency PAP quoted Deputy Finance
Minister Maciej Grabowski as saying Wednesday.
"The schedule for the tax to go into effect on March 1 is
definitely tight," Grabowski said. "The draft law introducing a tax
on extraction of certain minerals should reach the standing
committee of the Council of Ministers tomorrow."
The Polish government appears to be internally split over the
tax, which is forecast to bring in 1.8 billion zlotys ($514
million) in 2012 and PLN2.2 billion in coming years, with the
Treasury Ministry and the Economy Ministry calling on the Finance
Ministry to change the tax formula to allow miner KGHM Polska Miedz
SA (KGH.WA) to retain more of high commodities prices.
The Finance Ministry, meanwhile, is focused on bringing Poland's
deficit-to-GDP ratio below 3% this year and keen to implement the
tax. Until now, Polish taxpayers have only benefited from high
copper prices through the dividend KGHM pays, as the government
holds a 31.79% stake in the company.
KGHM shares have lost 32% of their value since Prime Minister
Donald Tusk first mentioned the government's intention to tax the
two metals in his Nov. 18 policy speech.
Newspaper website: www.pap.pl
-By Marynia Kruk, Dow Jones Newswires; +48 22 447-2431;
marynia.kruk@dowjones.com