Orlen like KGHM? The giant wants changes in the tax and gas extraction tax

Orlen wants changes in the tax and gas extraction tax similar as in tax breaks in the so -called Miedziowy – wrote the concern in the opinion to the proposal of the Ministry of Finance.

The Ministry of Finance has started the process of agreeing on the amendment to the Act on the extraction of some minerals, which aims to reduce the tax burden of copper producers in order to enable the implementation of investment intentions in connection with the role of copper in the transformation of the economy as a key product for pure energy technology.

The reform assumes the possibility of tax deduction from 50 percent. expenditure on investment projects in increasing mining incurred since 2026 and a 3-year period of application of a reduced tax rate. In the perspective of the first three years of reform, copper producers will raise funds for investments of PLN 750 million per year, and in the following years about PLN 1.5 billion per year.

“Tax on the extraction of some minerals in relation to natural gas and crude oil was designed as a form of adequate raw material pension during the period of expected significant development of gas extraction and oil from shale formations. The industry of the national gas and oil extraction in addition to tax and fees charges, is currently subject to very large investment challenges related to transformation towards emission neutrality ” – wrote Orlen.

“Among the investment activities requiring the highest financial outlays are projects to adapt the mining to the so -called methane regulation (limiting methane emissions to the atmosphere) and implementing the obligation to achieve specific levels of CO2 injection levels in landfills, i.e. geological landfills such as exploited oil and gas fields or salt aquifer (CCS designs)” – added.

Orlen postulates the introduction of the possibility of deducting from taxes incurred by taxpayers from 1/01/2026 investment outlays to the extent to the designed solution for taxpayers tax on copper and silver extraction tax, i.e. deduction from tax on the extraction tax on some 50 % minerals. the amount incurred by the entities of eligible investment outlays in the field of natural gas extraction and oil – while in a given settlement period the maximum deduction amount will not be able to exceed 40 percent. the amount of tax calculated from the natural gas or crude oil excavated this month.

“Investment expenses subject to deductible should include the costs of building new or reproducing existing natural gas and oil mine to maintain the level of domestic mining,” wrote Orlen.

Orlen also believes that the catalog of expenses possible from deduction should include investments for the implementation of obligations related to the technologies of reducing methane emissions into the atmosphere and investments to prepare CO2 landfills in depleted mines.

He also wants to expand the leaves of natural gas/oil extracted from the so -called marginal deposits.

“The current release threshold at the level of monthly natural gas extraction to the equivalent of 1100 MWh and 80 tons of oil should be considered too low, significantly affecting the economic conditions of extraction,” wrote Orlen.

The concern said that the postulated amount of tax exemption thresholds are 3000 MWh level and 300 tons for oil, respectively.

“This will allow to maintain mining in small deposits, for which the current tax thresholds significantly affect the lack of profitability and economic justification for the functioning of the mining plant,” he wrote. (PAP Biznes)

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