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Slovak National Council Approves Windfall Tax on Electricity Companies — Orbitax Tax News & Alerts

On 6 December 2022, the National Council (parliament) of the Slovak Republic approved a law for the introduction of a windfall tax (levy) on electricity companies based on Council Regulation (EU) 2022/1854 on an emergency intervention to address high energy prices. The levy covers the period 1 December 2022 to 31 December 2024 and must be paid by domestic and foreign producers with an installed capacity exceeding 0.9 megawatts, as well as by energy suppliers. Producers generating electricity using hydropower or biomass are exempt. The levy is imposed at a rate of 90% on the price per megawatt hour exceeding a specified range (caps) of EUR 50 to EUR 250 per megawatt hour, depending on the type of source. This approach is different from the Council Regulation, which establishes an effective cap of EUR 180 per megawatt hour. The law must now be signed and published in the Official Gazette to enter into force. Further details will be published once available.