Environment

Serbia rolls out ecotax – firms to pay up to EUR 17,000 per year

ecotax ecological taxation levy tax Serbia

Photo: Lucia Grzeskiewicz from Pixabay

Published

December 12, 2019

Country

Comments

0

Share

Published:

December 12, 2019

Country:

Comments:

0

Share

The Government of Serbia adopted a directive dividing the corporate sector into three categories according to environmental impact and imposed ecological taxation. Firms are in four groups with regard to size. Persons taxable with property tax were also included at the bottom, with a levy of RSD 1,200 (EUR 10.2) per annum.

The ecotax was capped at RSD 2 million or just over EUR 17,000 for the largest companies in sectors like mining, gas, power generation and distribution and the manufacturing of wood, textile, meat and plastics. Energy from renewable sources isn’t separately classified.

Energy production and distribution is in the highest impact class and fiscal policy makers didn’t separate renewables from the item

Households will be charged with the lowest sum for the use of electrical energy, heating devices, chemicals, products which are classified as special waste after use, like tires and batteries, and for food production and many other activities. Taxpayers get a 50% discount for residential units they don’t live in, the executive order reveals.

The fee was initiated by the Chamber of Commerce and Industry of Serbia, known for its acronym PKS. The criterion that liabilities are proportional to pollution was introduced with last year’s Law on Fees for Use of Public Goods.

Units in the legal micro-entity class which pollute the least must pay RSD 5,000 per calendar year

The decision complements a directive that was passed earlier this year with the categorization. Units in the legal micro-entity class which have the smallest impact have to pay RSD 5,000 per calendar year.

The middle section includes holding cattle, fishing, processing up to 300 tons of fruit and vegetables per day and the production of clothes and footwear. The sums there range from RSD 10,000 to RSD 1 million. However, big pig and poultry farms are in the higher category.

The initiative has come from the Chamber of Commerce and Industry of Serbia

An anonymous source who was earlier quoted by the media claimed the ecotax system’s rollout means Serbia is meeting European Union standards and that spending on environmental protection would be lifted to the bloc’s average. So far the charges were calculated per square meter or gross income. Serbia also has environmental levies on some groups of imported products.

The corporate tax order has come into force immediately, while for citizens it will apply from January 1.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

wise-serbia-Female Leader of Energy Transition award

Female Leader of Energy Transition award winners announced

20 September 2023 - The Female Leader of Energy Transition awards are given for extraordinary results and dedication to the processes of the energy transition, democratization and decentralization in Serbia

Activists concerned following European Parliament vote on Critical Raw Materials Act

Activists slam EU after vote on Critical Raw Materials Act

17 September 2023 - Civil society organizations criticized EU institutions after the European Parliament adopted a position on the Critical Raw Materials Act

German Cooperation to mark Climate Week in Serbia

German Cooperation to mark Climate Week in Serbia

15 September 2023 - German Development Cooperation in Serbia will mark Climate Week. A series of events will be held from September 16 to September 23.

A1 brings Erin Brockovich to Belgrade

Telecommunications company A1 brings Erin Brockovich to Belgrade

15 September 2023 - Famous environmental activists Erin Brockovich was the special guest this year at the A1 Talk conference for the business community