The copper giant will earn more. Parliament in favor of reducing the copper tax

On Friday, the Sejm passed an amendment to the act reducing the tax on copper and silver mining. The new tax solutions, which in practice apply only to KGHM, are to enter into force at the beginning of 2026.

420 MPs voted for the act, no one voted against it, and 15 MPs abstained from voting. The bill will now go to the Senate.

The amendment to the Act on the Extraction of Certain Minerals provides for a reduction in the tax on copper and silver extraction from 2026 by modifying in 2026-2028 the formulas according to which the rates of this levy are calculated, as well as by enabling, from 2029, the tax deduction of part of the expenditure incurred in connection with the extraction of copper and silver in Poland. Deductible expenses – according to the amendment – are to be related to the payer's investments.

Pursuant to the Act, the coefficient used to calculate the tax amount, currently 0.85, will drop to 0.74 in 2026, while in 2027-2028 it will amount to 0.68. The Ministry of Finance estimates that the payer is to gain a total of PLN 500 million in 2026 and PLN 750 million annually in 2027-2028.

Additionally, from 2029, a mechanism will be in force that will enable a 40% tax deduction. eligible capital expenditure related to copper and silver mining. The maximum value of this deduction in a given settlement period will not exceed 30%. the amount of tax on mined copper and silver. (PAP)

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