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