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Slovak Lawmakers Approve Windfall Tax on Fossil-Fuel Companies

Dec. 22, 2022, 10:40 AM

Slovakia’s parliament approved a temporary windfall tax on oil, gas and coal companies, based on the EU-wide mechanism.

  • Lawmakers backed what the government calls “solidarity contribution” at 55% of excessive profits, down from an initially proposed rate of 70%
  • The tax will be applied only on 2022 profits
  • The new measure is expected to bring about EU350m in additional budget revenue, down from an estimated EU520m that would have been generated under the original proposal, according to Parliamentary Financial Committee Chairman Marian Viskupic
  • NOTE: Slovakia’s sole refinery Slovnaft has opposed the tax, saying it will significantly worsen its financial situation ...