JSW renews bid for $444m tax refund amid liquidity squeeze
GDANSK - Polish state-controlled coal miner JSW renewed on Thursday its request for a 1.6-billion zloty ($443.6-million) refund of the "solidarity levy", a windfall tax on excess profits, as it faces mounting losses and a liquidity crunch.
JSW argues that the retroactive tax on income, which it paid during 2023 and 2024, violates legal principles and results in double taxation. It says that instead of windfall profits from high energy prices, it faced significant electricity costs.
The company had previously sought a refund in April, but the Ministry of Climate and Environment declined in June to initiate proceedings, stating it lacked the authority to assess the levy's constitutionality.
As of 11:15 GMT, JSW's shares were trading 8.7% higher, on track for their biggest daily rise since January 2024 if the gains hold.
Erste Group analyst Jakub Szkopek said that while JSW is seeking to improve its liquidity through the refund, its financial situation remains challenging.
"The (share) reaction is speculative and positive, but we must remember that the current situation is not the best," Szkopek told Reuters, adding that low coking coal prices and a strong Polish zloty against the USdollar remain problematic for the company.
JSW is the European Union's largest producer of coking coal, one of critical raw materials on EU's list and essential for steel production.
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