Potential repeal of the European Emission Allowance Trading Scheme in practice
The consequences of the economic crisis currently dominate European politics. Most member states approve different measures to consolidate their public finances. In Slovakia, an increase of income to the state budget is also expected, among other things, by a new tax on emission allowances.
The tax on emission allowances has been introduced in Slovakia, entering into force on January 1, 2011. Under the new legislation greenhouse gas emission allowances allocated free of charge according to the National Allocation Plan approved for the trading period 2008 to 2012, are taxed at a high rate of 80 percent. The new tax on emission allowances has led to much professional debate regarding its compliance with the Slovak Constitution, binding international treaties and EU law. In the near future the Slovak Constitutional Court will hear these issues.