The Ministry of Finance has presented a draft amendment to the Act on the extraction of some minerals, aimed at supporting copper producers in the face of growing modernization challenges. The reform assumes a deduction of 50 percent tax expenditure on tax and periodic reduction of tax rates. In the first three years of changes, it is estimated that companies from the copper industry will obtain funds for investments in the amount of approx. PLN 750 million per year, and then this amount will increase to approx. PLN 1.5 billion per year.
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PKN Orlen in his opinion reminded that tax on mining, among others Gas and oil was originally designed in terms of the expected development of shale raw materials mining. Currently, however, as the concern emphasizes, the sector of this type of extraction faces the challenges related to the transformation towards climate neutrality. Tax charges, as well as pressure on investments, significantly affect development opportunities in this industry.
Among the priority investment activities, Orlen indicated projects adapting mining activities to new regulations regarding the reducing methane emissions and implementation of CO2 storage technology.
– The needs related to the implementation of regulations, such as methane regulation, or the development of the CO2 (CCS project), require huge financial outlays – said Orlen.
The concern postulates the introduction of a deduction of 50 percent. Investment outlays incurred from tax extraction tax, while in each billing period this amount should not exceed 40 percent. the value of the calculated tax. According to Orlen, these deductions should also include expenses for the construction of new ones or reproducing existing gas and oil deposits, as well as investments related to the reduction of methane emissions and the preparation of landfill infrastructure for carbon dioxide.
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Orlen also suggests raising tax exemption thresholds for the so -called marginal deposit. Current limits, amounting to 1.1 thousand MWh of monthly extraction for natural gas and 80 tons for oil, was considered too low, which negatively affects the profitability of their operation. The concern proposed to increase these thresholds to a level of 3 thousand. MWh for gas and 300 tons for oil. In the opinion of PKN Orlen, such changes would enable the profitable activity of small deposits and their further development.
– The increase in tax thresholds will allow the continuation of mining in small deposits, which at current rates are not able to function economically – emphasized Orlen in the official position.
