| Bulgaria |
- "There are tax allowances for waste treatment transactions".
- Duty free import for environmental monitoring equipment, waste water treatment equipment, waste gas treatment equipment, solid waste treatment equipment, solar/wind/biomass energy production equipment, and, production facilities for energy saving lamps. The duty exemption amounts to 10-20% of the value of such goods. The total claimed duty exemptions amounted to USD 1.1 mln in 1996.
- Higher duty and excise for cosmetics containing freon.
|
| Czech Republic |
- Preferential VAT rate of 5% (standard rate is 22%): A social approach to selecting the goods with the reduced tax rate was taken. Consequently, such items as foods, solid fuels and heat energy have a lower tax rate. With regard to environmental protection the following goods receive preferential VAT: coatings and lacquers (including enamel and fine lacquers) based on synthetic polymers or chemically-modified natural polymers, dispersed or dissolved in an aqueous medium; biogas; polyvinyl alcohol polymer foils; saw dust, residues and waste, also agglomerates in the form of blocks, briquettes, pellets and similar shapes; paper, carton and cardboard and products manufactured from them in the Czech Republic, on the condition that the certificate indicating production from more than 70 % recycled paper is issued by a Branch Certificate Center; water and wind turbines with outputs respectively up to 100 kW and 75 kVA; heat pumps; solar facilities; household appliances for water purification and small waste treatment plants for family houses, and any parts and components for them; fillings for the appliances and plants; machinery and instruments for air filtering and purifying; automobile catalyzers; passenger cars and other primarily passenger motor vehicles with electric motors; economical light sources (fluorescent and discharge tubes and their components); thermostat valves; flow meters; heat consumption meters and hydrometers for households.
- Exempt from the income tax is: income from the operation of small hydroelectric power plants with an output up to 1 MW, wind powered electricity generating stations, heating pumps, solar powered facilities, biogas-producing plants, facilities producing bio-degradable substances, which are determined in generally binding legislative provisions, and, facilities utilizing geothermal energy. This income tax exemption can be claimed in the first calender year of operation and in the subsequent five years.
|
| Estonia |
- VAT: The standard VAT rate is 18%. According to the VAT Act, goods and services sold for "treating dangerous waste" and recoverable package are exempted from VAT. The Government of Estonia gave also a VAT exemption on goods imported to Estonia within the framework of projects financed by loans taken or guaranteed by the Estonian Government, as well as to environmental equipment and technology imported by the Ministry of the Environment.
- Income tax: In accordance with the Act on the Income Tax, enterprises pay a 26 per cent tax on "taxable income", where taxable income is defined in relation to gross income and deductible operating expenses (called entrepreneurship expenses). According to the Income Tax Act, pollution charges are not deductible operating expenses for income tax purposes. One main implication of pollution charges being paid of after-tax profits is that the actual rates of pollution charges for an enterprise are about 35 per cent higher than the pollution charge rates specified in the governmental regulations.
|
| Hungary |
- Mineral oils used for producing electricity are exempt from the consumption tax.
- In the corporation tax, accelerated amortization rates are in force: for steam-, hot water- and thermal pipes the amortization rate is 4%, while the rate is 33% for solar cells, fluidized coal-fired equipment and other boilers, burning agricultural by-products, emission control equipment, electrostatic filters, other scrubbers serving cleaning of gaseous substances, dust separators, adsorptive gas cleaners. No corporate tax has to be paid for services connected to renewable energy carried out by Public Utility Companies.
- The preferential VAT rate of 12% (normal rate is 25%) applies for the following goods: solar cells; catalytic converters; propane gas and pb gas; wood for heating purposes and wood briquette.
|
| Lithuania |
- According to the law on profit taxes, legal persons who use profits for investments do not have to pay profit taxes. This applies also for environmental investments.
|
| FYR Macedonia |
- All environmental investments are free from income tax.
- The import of equipment for environmental protection is free of custom duties and taxes.
|
| Poland |
- From 1 January 1998 taxpayers are granted an exemption from taxable income resulting from the use of waste produced in Poland. The current-year exemption from income is based on the ratio of the value of waste products used in the prior year over the total value of raw materials (including waste) used in the prior year. There is allowance on the income tax for the companies which utilise the following waste products: batteries, tyres, accumulators, plastics waste, glass waste, paper, metal waste, hazardous waste classified as municipal waste, vehicles wrecks.
- Income tax allowances for farmers who invest in, or modernize environmental protection equipment, renewable energy sources, installations to enhance the use of water;
- Exemptions from real estate tax for water supply and sewage collection installations, land used for water retention reservoirs and hydro-power stations and various categories of forest land;
- Exemption from real estate sales tax if the sale was governed by the Act on Environmental Protection;
- Administrative fee exemptions and income tax exemptions for non-profit organisations active in environmental protection;
- Interest rate subsidy for farmers adapting their farms to ecological farming principles.
- The Polish VAT regulation provides a 0% VAT rate for a number of products and services related to environmental protection.
|
| Romania |
- Exempt from import taxes and charges is equipment for wastewater treatment and sewage systems.
- The standard VAT rate is 18% (since 1993). Some of the products and services which were exempted from VAT in 1994 were: fuel for domestic users, electricity for domestic use, thermal energy for domestic use, sanitation, water supply and sewerage services, public transport.
|
| Slovak Republic |
- Operations of small hydropower plants, wind electricity generation, solar equipment, heat pumps, biogas generating equipment and geothermal production facilities are excluded from income tax for the first five years of operation.
- Commercial activities related to the collection, handling and transport of hazardous waste, facilities dealing with recycling and decreasing the volume or risk of hazardous waste, operations of hazardous waste deposits (landfills) and incinerators of hazardous waste are excluded from income tax if these activities generate a profit.
- The standard VAT rate in Slovakia is 23%. A reduced rate of 6% exists. For encouragement of environmental friendly products, the reduced rate applies for the following category of products: heating oils with less than 1% of sulfur content, biogas, firewood, wooden chips; paper made of at least 70% of recycled paper; measuring equipment for heat and water consumption in households; treatment of wastewater and solid waste disposal services.
- A regulation of the Ministry of Finance adopted in April 1996, represents the first step to full energy and fuel price liberalization. The prices are established on the basis of economically justified cost and adequate profit. This assessment is carried out by the Energy Inspectorates. Since June 1997 because of this Regulation, electricity prices increased for large consumers by about 5% and for household by 10%. Centralized district heat supply systems and the use of solid fuel are still subsidized. Household natural gas and electricity prices are still regulated.
|
| FR Yugoslavia |
- Corporate and income tax allowances are available for environment related capital expenditures;
- A turnover tax exemption is available for solar power equipment;
- Accelerated depreciation in the amount of 25% is available for energy saving equipment;
- Pollution reduction equipment is exempt from custom duties and turnover tax;
- Exempt from the turnover tax are: drinking water, biodiesel and all services aimed to decrease water/air/soil/noise pollution as well as energy saving services.
- In Monte Negro, fertilizers and pesticides are subsidized through exemption from the turnover tax.
|
Note: Respective information has not been provided for Croatia, Latvia and Slovenia. The information provided in the table is not necessarily covering all environmentally relevant tax allowances and exemptions in force in the countries covered and therefore should be interpreted with caution. This seems to be the case especially for energy related tax allowances and exemptions.
