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JSW Poland renews bid for $444m tax refund amid liquidity crisis

JSW, a state-controlled Polish coal miner, renewed its request on Thursday for a refund of 1.6 billion Zlotys ($443.6 Million) on the "solidarity tax", which is a windfall profit tax. The company faces increasing losses and a cash crunch.

JSW claims that the retroactive income tax, which was paid in 2023 and 20,24, is illegal and leads to double taxation. It claims that it did not make windfall profits due to high energy prices but instead faced significant electricity expenses.

The company sought a refund from the Ministry of Climate and Environment in April. However, the Ministry declined to take action in June, saying it did not have the authority to determine the constitutionality of the tax.

JSW shares are trading 8.7% higher as of 1115 GMT. If the gains continue, they will be on course for their largest daily gain since January 2024.

Jakub Szkopek, an analyst at Erste Group, said that JSW's financial situation is still challenging despite its efforts to improve liquidity via the refund.

Szkopek said that while the (share) response is positive and speculative, the current situation for the company is not ideal. Low coking coal prices, and the strong Polish zloty versus the U.S. Dollar are still a problem.

JSW is Europe's biggest producer of coking, a raw material essential to steel production and on the EU's critical list. $1 = 3.6069 Polish zlotys (Reporting and editing by Milla Nissi-Prussak).

(source: Reuters)