Below we present the position of the Bolesławiec City Council on the tax on the extraction of certain minerals:
On 1 October 2014, Kombinat Górniczo-Hutniczy Miedzi Polska Miedź S.A. launched the Sierra Gorda copper mine in Chile. The joy of our Lower Silesian company KGHM entering the global market is mixed with regret that, as a result of introducing the tax on minerals, there is no chance for investments near Bolesławiec, even though the copper and silver deposits located here are rich and possible to exploit.
On 18 December 2013, the Bolesławiec City Council supported the appeal of the Lubin City Council of 13 November 2013 concerning the abolition of the tax on the extraction of certain minerals. The effects of introducing this tax, which in practice applies to this one company, could have been foreseen, and the region is now experiencing the negative effects of imposing this levy on KGHM Polska Miedź S.A. for the benefit of the State Treasury.
Almost PLN 2 billion in annual tax deprives the Lower Silesian Voivodeship of at least PLN 100 million in its share of corporate income tax (CIT). The effects for municipalities are equally severe. – We spent money documenting the deposit near Bolesławiec. It is very attractive in terms of its copper content. But the tax means that even with high prices of non-ferrous metals, the investment would be unprofitable. […] In Poland, the tax on minerals has gone too far, and if this does not change, no one will undertake investments – Herbert Wirth, Herbert Wirth, president of KGHM Polska Miedź S.A., said in an interview with “Gazeta Wyborcza”.
We appeal to the Prime Minister to undertake a legislative initiative and introduce an exemption from taxation for amounts allocated by KGHM Polska Miedź S.A. to investments in Poland. Every zloty invested in increasing the mining and processing capacity for copper, silver and other minerals will bring Poland, the region and municipalities benefits many times greater than the tax itself. For the area of the so-called old copper basin on the border of Bolesławiec and Złotoryja counties, this should be a development stimulus and an opportunity to create modern branches of the economy. The government's inaction may deepen the ongoing exodus of young Poles, perpetuate poverty and unemployment in peripheral areas, and result in a growing need to provide social assistance to large groups of society.
The adoption by the Bolesławiec City Council of a resolution on the position of the Bolesławiec City Council concerning the tax on the extraction of certain minerals is a consequence of actions undertaken by the City Council in December 2013, when Resolution No. XLV/377/2013 of the Bolesławiec City Council of 18 December 2013 was adopted in support of the appeal to the Prime Minister, adopted by Resolution No. XLIV/330/13 of the Lubin City Council of 13 November 2013. In view of the ineffectiveness of the actions taken so far, the Bolesławiec City Council decided to take a position once again on this extremely important matter.
Bolesławiec City Hall/ii