State owned news agency PAP quoted Deputy Finance Minister Mr Maciej Grabowski as saying that Polish finance ministry's plan to have a proposed tax on copper and silver extraction go into effect March 1 is a tight deadline.

Mr Grabowski said that "The schedule for the tax to go into effect on March 1 is definitely tight. The draft law introducing a tax on extraction of certain minerals should reach the standing committee of the Council of Ministers.”

The Polish government appears to be internally split over the tax, which is forecast to bring in PLZ 1.8 billion (USD 514 million) in 2012 and PLN 2.2 billion in coming years, with the Treasury Ministry and the Economy Ministry calling on the Finance Ministry to change the tax formula to allow miner KGHM Polska Miedz SA to retain more of high commodities prices.

The Finance Ministry, meanwhile, is focused on bringing Poland's deficit to GDP ratio below 3% this year and keen to implement the tax. Until now, Polish taxpayers have only benefited from high copper prices through the dividend KGHM pays, as the government holds a 31.79% stake in the company.

(Sourced from www.pap.pl)