Temporary Suspension Of Emission Allowances Tax

The 2011-12 tax on emission allowances has been suspended until the Constitutional Court rules on its constitutionality.

The suspension came just in time, as the relevant advance on tax is payable twice-yearly and the next deadline for payment together with the deadline for submission of the first tax return is approaching (30 June).

The tax has a very high rate (80%) and is payable on any monthly emissions allowances that are unused in that month by a participant in the emissions trading scheme. It only applies to allowances in 2011-12, as a new five-year scheme is being adopted for allowances in 2013-17.

Members of the Slovak parliament initiated the decision by the Constitutional Court to suspend the relevant provisions of the Emissions Trading Act.