Gov't Okays Tax on Extraordinary Profits of Energy Firms

Bratislava, November 28 (TASR) – Energy producers with facilities with an installed capacity exceeding 0.9 megawatts (MW) along with energy suppliers should pay a tax on excess incomes, according to a draft amendment to the Energy Act approved by the Government on Monday. Eduard Heger's (OLaNO) Cabinet asked Parliament to debate the bill via a fast-tracked legislative procedure. "The specific way in which the payer determines the amount of excess income for the levy (or advance payment) period will be determined by the Government by regulation," stated the Economy Ministry in an explanatory report for the approved bill. The levy amount will be 90 percent of excess income, and the levy should cover the period from December 1, 2022 to December 31, 2024. Small energy sources up to 0.9 MW and energy produced by pumped water power plants or from biomethane will be exempt from the levy. The cap for market income obtained from the sale of one megawatt hour (MWh) of electricity will be determined by the Government in a regulation, ranging from €50 to €250 depending on the type of source. The draft law also introduces the obligation to label Russian oil supplied to Slovakia by pipeline and oil products produced from such oil, as well as the obligation to keep records on how such labelled products are handled. am/df