In April 2025, JSW applied to the Ministry of Climate and Environment for the reimbursement of PLN 1.6 billion paid in 2023-2024 under the so-called windfall tax. According to the Company’s current report, the Ministry of Climate and Environment refused to initiate proceedings in this case, citing a lack of competence to assess constitutionality of legislative acts, arguing that such authority lies exclusively with the Constitutional Tribunal. The Ministry issued a decision on June 11, which was delivered on June 17. In response, JSW has exercised its right to request that the Minister reconsider the application.
- We believe that assessing the compliance of a legislative act with the Constitution and international law does not in itself constitute grounds for refusing to initiate administrative proceedings. Public administration bodies, including the Minister, have the authority to assess interpret and apply legislative provisions in light of constitutional principles. At this stage, the company does not have the legal standing to petition the Constitutional Tribunal for a constitutional review, as this right is reserved for, among others, administrative courts - explains Stanisław Gordziałkowski of the Sołtysiński Kawecki & Szlęzak Law Firm, representing JSW.
As a result of the windfall tax introduced by the Act of 27 October 2022 on extraordinary measures to reduce electricity prices and support certain buyers in 2023, JSW paid PLN 1.6 billion to the state budget in 2023-2024. In April, the Company requested the reimbursement of these funds, arguing that the relevant provisions in question violated fundamental principles of both domestic and EU law, including the prohibition of retroactivity, the principle of equality before the law, and the principle of fairness and universality of taxation. Moreover, the Company argues that the payment of the tax resulted in the double taxation of the its 2022 income – first through corporate income tax (CIT), and then through the 25% windfall tax Contrary to the assumptions underlying the legislative act, JSW did not benefit from extraordinary profits in the energy market; rather, it incurred significant costs due to the elevated electricity prices, as electricity constitutes a major input in its production processes.
Recovering the funds paid under the windfall tax is a key component of JSW Group’s strategy to stabilize its financial in the coming months and years.
- The potential reimbursement of these funds would enable the execution of key investments and increase the Company’s resilience to adverse market conditions. Persistently low coal prices and unfavorable exchange rates continue to exert significant pressure on our financial results. Under current conditions, JSW’s priority is to protect its liquidity and build long-term business stability - says Remigiusz Krzyżanowski, Vice-President of the JSW SA Management Board for Financial Matters.
