Additionally, the pricing policy did not internalize true costs and up to now it has still not been possible to solve the issue of de-regulating water, fuel (coal, gas), heat and energy prices. Highly energy intensive and resource consuming industries still make up a large share of the overall structure of the economy. The current economic circumstances, characterized by the need to convert the previously dominant military-industrial sector and overall economic recession, do not create a good starting point for applying environmental protection instruments. Despite this, the laws creating the basis for new environmental legislation were adopted.
Concerning the experience of the past and a certain tradition, the application of economic instruments is based on payments for exploiting natural resources (water) and for polluting the environment. Due to the limited experience in applying such instruments in the new circumstances thus far and their starting slope curve it is not possible to evaluate their efficiency just yet. However, one can expect that the efficiency rates of the instruments are rather low, therefore loosing their incentive function.
The revenue raising function of the instruments is also being fulfilled insufficiently, especially due to the heritage of the past and the stark economic situation of most municipalities and enterprises. The flow of revenues to the State Fund for Environment per year amounts to only about 10% of total investments.
Extremes in reality must be dealt with if economic instruments are to play a successful role in environmental protection efforts of the state. On the one hand such instruments are currently extremely depreciated, and on the other hand they are considered as universal solutions. The decisive obstacle to their implementation is the unstable economic situation of the country and the depreciation of their position in the fiscal and budgetary policies of the state.
Another very serious problem is the lack of qualified environmental economists, especially in the state administration, who are able to prepare and enforce the needed instruments.
Successfully implementing the state environmental policy is first of all an issue of successfully transforming and developing the national economy. The enormous environmental challenge poses risks which have to be addressed gradually and systematically in the course of a relatively long period. Consequently, the implementation of environmental policy has to be based on a time schedule which will considerably outlast the current economic recession.
We consider it to be an important task to harmonize the use of those resources from the state budget and from the state environmental funds for financing environmental investments.
Another task being discussed at present is the transformation of the State Fund of Environment into a Revolving Fund. The respective draft law was approved by the Legislative Council of the Government. With these new regulations, the philosophy of supporting environmental investments of businesses and municipalities would be fundamentally changed.
The Ministry of Environment is working on the completion and improvement of the system of economic instruments. In the near future, preparatory work will start with respect to the possibilities of harmonizing the economic instruments with those employed in the European Community.
In the Value Added Tax (where 2 rates are distinguished: 25% basic rate, and 6% reduced rate), the items taxed at the reduced rate include certain environmentally sound products, such as products made of more than 70% recycled paper, wooden sawdust and briquettes, and electric passenger cars. The Ministry of Environment is trying to extend the list of items classified in the reduced rate category (e.g., products made of more than 50% recycled plastic, water soluble paints, powder paint, low sulphur fuel oil that contains up to 0.05% of sulphur). However, the Ministry of Finance is resistant. An extention of the list of goods with reduced VAT rate depends on general economic development in the country. The Ministry of Environment also required that heavy fuel oil containing more than 2% sulphur be classified in the basic rate.
In regards to the consumption tax, preferential treatment is given to lead-free petrol over leaded petrol. The tax rate for non-leaded petrol (up to 0.013 g lead/liter) is currently 9800 Sk/ton, while for leaded petrol (above 0.013 g lead/liter) it is 10800 Sk/ton. The consumer prices in mid-1994 per liter were max. 19.70 Sk for "Natural" petrol, max. 19.00 Sk for "Special" - 91 oct, max. 20.10 Sk for "Super" - 95 oct, and max. 16.80 Sk for "Diesel fuels".
There is an income tax allowance to encourage the use of alternative energy sources. Exemptions are provided for incomes from small water power stations producing up to 1MW electric energy, wind power plants, thermal pumps, solar plants, biogas and bio-degradable goods production plants, and plants for geothermal energy. The exemption applies for a five year period after the start of operation.
There is a Road Tax exemption to support the use of automobiles with catalytic converters and electric passenger cars. The exemption from the Road Tax can be claimed only for cars equipped with catalytic converters, electric passenger cars, vehicles for the collection of municipal waste and cars used in combination transport. The Road Tax relates to cars used for commercial activities only. Thousands of car owners are taking advantage of this incentive at present. However, considering the high prices of new cars, the incentive of this tax exemption is minimal.
| December 1989 | actual (September 1994) | ||
|---|---|---|---|
| retail price | retail price | % of total taxes | |
| Electricity for: - households - others |
0.29 Kcs/kWh 0.45 Kcs/kWh |
0.96 Sk/kWh 1.53 Sk/kWh |
6 % VAT 6 % |
| Fuel oil for: - households - industry |
1.70 Kcs/kg 1.70 Kcs/kg |
4.90 Sk/kg 4.90 Sk/kg |
6 % 6 % |
| Gas - households - industry |
0.75 Kcs/m3 1.53 Kcs/m3 |
2.94 Sk/m3 3.55 Sk/m3 |
6 % 6 % |
| Coal - households - industry |
0.26-0.39 Kcs/kg 0.20-2.33 Kcs/kg |
1.0-2.50 Sk/kg 4.0-10.0 Sk/kg |
6 % 6 % |
| Gasoline - leaded - unleaded - diesel oil |
8.0-9.0 Kcs/l |
19.00-21.10 Sk/l 19.70 Sk/l 19.80 Sk/l |
9.8 Sk/kg* + 6 % 9.8 Sk/kg* + 6 % 9.0 Sk/kg* + 6 % |
The economy of the Slovak Republic up to June 1994 was characterized by the slacking of the recession, diminishing problems with the state budget, the stabilization of exchange rates, controlling inflation, keeping a relatively favorable level of overall indebtedness, reducing unemployment and reducing the high social expenses of the transformation. In the field of microeconomics, outstanding problems are the insolvency issues, the number of lost enterprises, and problems linked to the implementation of structural changes.
The transformation process has not yet been emerged from the so-called institutional deficit. Not all institutions and market mechanisms have been established yet, as for instance the stimulation of a competitive culture, the capital market, a fully developed financial sector, the housing market, tax discipline, and others.
The structural changes of the economy are proceeding with relatively weak intensity, reflecting prevalently the irregular decline of domestic demand and of the changes of external demand on particular sectors of the Slovak economy. The changes reflect only partly the purposeful transformation strategy of enterprises. There has been small success in abandoning the structure with prevailing heavy industry since the beginning of economic reform. The reason for that is the substantial time and capital demand necessary for restructuring and modernizing the engineering (this is especially the case for the munitions), metallurgy and chemical industries. The greatly liberalized competitive background in the national market is restricting the success in product and branch diversification. The problems of balancing the state budget prevent supporting the restructuring process, the progressive technological changes and the changes in aggregated supply, in a sufficiently active and intensive way.
The privatization process in Slovakia started based on the concept of so-called small privatization, and on coupon privatization, as a basic method within the frame of the first privatization wave. By the end of 1992, a value of approximately 15,000 mln Kcs was privatized in the frame of small privatization, and a value of approximately 169,000 mln Kcs in the frame of the 1. privatization wave. The original federal concept was substituted in August 1992 with the "Concept for further proceeding of the privatization process in the Slovak Republic"; in September 1993 it was further modified. These changes have markedly slowed the process of creating a capital market and evoked uncertainty in the micro-sphere, extending the "before-privatization" agony of a number of economic subjects.
The main goal of the monetary policy was to keep inflation at a bearable level and to keep the internal convertibility of the Slovak Koruny. The realization of monetary policy in the first year of the existence of the independent central bank was influenced by several non-repetitive factors, including first of all the influence of the dissolution of the CSFR with keeping the common currency up to February 8, 1993 and the creation of the new Slovak currency. Besides that, it was influenced by the introduction of the new tax system, price liberalization progress, changing of the exchange rate of Sk and, partly, also by the formation of the independent state and its institutions. In fulfilling the currency program, the inflation expectations of the national bank were not realized mainly by problems of keeping a level balance of payments, apprehensions before the wage-conditioned inflation caused by liberalizing the wages regulation, and by financing the state budget deficit. The latter was one of the main factors considerably restricting the possibilities of affording more credits first of all to enterprises, and thus prohibiting more significant support of restructuring processes and for improving the insolvency status of many enterprises.
The enterprises are overburdened with previous debt and present operational costs. The recession strikes almost uniformly the majority of economic sectors, leading to the mutual exchange of claims and liabilities (primary and secondary insolvency). The environmental stress is rather high, but it is concentrated in several sectors. Technological indebtedness is a major problem requiring new investments, but the necessary resources are missing.
Due to the economic situation the banks prefer short-term credits, however, the enterprises are not even able to repay those. Foreign partners require the solution of environmental debts and sometimes try to pressure the government to remediate unsalvagable environmental debts.
The public sector is significantly struck by both the hard restriction of expenses of the state budget and the unclear direction of its further development. The effort is to privatize the main part of the public sector, including schools, health service, water-supplies, sewerage systems, transportation, and power industry, but the absence of an integrated concept leads to serious problems.
The municipal administrations are in a complicated situation. Shifting more responsibilities to the municipal level within the framework of de-centralization, and some sources of financial income, further effects the income of the state budget. The situation has arisen where the possibility of financing to a necessary extent such needed ecological investments as water-supplies, sewerage, waste water treatment facilities, modernization of heat and energy sources and so on has been seriously hampered. The result is the mortification of investment construction in the public sector in spite of constructions having a value of 230 000 mln Sk having already been started.
Assuming unchanged conditions and no major modifications of the present concept of economic policy of the Government of the Slovak Republic, the development of GNP is estimated in the range of 0 % to +2 % according to warning prognoses. With an unchanged fiscal policy, proceeding along the trends of 1993 and early 1994, it can be expected that budget expenses will rise in 1995 more quickly than revenues. This would lead to an increase in the state budget deficit in 1995 up to 17,000 mln Sk. The development of the consumer price index between the economic shocks shows the permanent rate of inflation to be 8.5% per year. According to prognoses of various domestic and international institutions, inflation could be around a level of 11-15% in 1995. The trends in employment indicates the average employment would fall by more than 3%. Depending on wages and variants of GNP development, it can be expected that the unemployment rate in 1995 could be in the range of 18.9 to 20.1%. The share of the state deficit of the GNP is estimated to be around 4% in 1995. The Governments goal for 1995, expressed in the Memorandum of Economic Policy for 1995, is to take the necessary measures to restrict the share of state deficit of the state budget to 3% and the inflation rate to 8%, to obtain 2% growth of GNP and to hold the unemployment rate to 18%.
An alternative to the active restructuring of the economy assumes the use of external resources with active participation of the International Monetary Fund, G-25 governments, EC and World Bank. This development variant assumes high expenses for restructuring banks, enterprises and the employment market in the scope of several thousand millions Sk. The variant assumes a lower inflation rate (approx. 10 %), the budget deficit in the scope of 4-6 %, a shift from unemployment to a structural unemployment. The scenario of successful restructuring assumes creating the conditions for steadily maintainable growth in a medium- and long-term perspective.
With the exception of the State Environmental Fund, the usage of those funds' resources is intended first of all for solving economic problems of businesses and other subjects of the corresponding sector. The solution of tasks linked to the protection of environment is only taken into account as a secondary priority. In determining the usage of resources of these funds for actions linked to environmental protection, the criteria and priorities employed for managing the resources of the State Environmental Fund are not taken into account.
Within the draft of the state budget of the Slovak Republic and the drafts of the sector budgets, the following means have been assigned for the protection of the environment:
The anticipated profile of support from the State Budget and the State Environmental Fund is as follows (the data are given in mln Sk):
| Environmental sectors supported | 1993 | 1994 |
|---|---|---|
| water-supply systems | 513.4 | 283.2 |
| waste water treatment and sewerage | 1551.1 | 423.5 |
| other water management actions | 4.5 | 624.2 |
| atmosphere protection | 346.1 | 636.6 |
| waste management | 90.8 | 257.3 |
| nature protection | - | 14.5 |
| other actions | - | 126.5 |
| TOTAL | 2505.9 | 2365.8 |
Raising revenue for the State Environmental Fund is ensured by the means of the corresponding laws using the economic instruments aimed at protecting the atmosphere and water, waste management, and nature protection. Applying the polluter pays principle as one of the fundamental principles of environmental policy, an important centralized, earmarked source for financing environmental needs is provided by the Fund. Especially due to the large difference between financial needs and sources of funding for environmental actions of both investment and non-investment nature, it is necessary to weigh the issues associated directly with creating revenue sources for the State Environmental Fund and the issues involved in creating other sources of financing for environmental activities.
As of yet the formula for determining the amount of means to be assigned by the state budget to for financing the creation and protection of environment has not been adopted. The Ministry of Environment is preparing a proposal for coordinating the use of resources of the state budget, state funds and enterprises so as to maximize the potential resources available for environmental protection.
References
1. The objectives of economic policy of the government of the Slovak Republic for 1995 (in Slovak language). The centre of strategic studies of SR, Bratislava 1994.
2. Cerna, A.: The analysis of industrial policy, financial strategy, environmental policy and regional policy (in Slovak language), Economic Institute SAV, Bratislava 1994.
SPECIFICATION
A charge is imposed for every ton of discharge emitted
from so-called large and medium-sized air pollution sources. The
self-measurement of the emissions is, consequently, necessary
and obligatory.
STATUS
In force since 6.5.1992
AIM
The charges provide economic incentives for the air
polluters to take pollution reduction measures. Another function
of the charges is to provide income and to enable financial support
of activities which improve the environment.
SUBJECT
So-called large and medium-sized air polluting sources
must pay charges:
Large sources:
Medium sources:
OBJECT
Charges are imposed on five categories of air pollutant
emissions. The limits are determined by MoE Notice 407/1992. The
classification with final rates in Sk/ton are the following:
The charges will be gradually increased:
1992 20% of the final rate
1993 40%
1994-1995 60%
1996-1997 80%
since 1998 100%
INCOME
1992 - total: 95 mln Sk = 2.5 mln ECU
1993 - total: 238 mln Sk = 6.3 mln ECU
USE OF INCOME
Income from emission charges goes into the State
Environmental Fund. This income is used to finance programs related
to air pollution.
IMPLEMENTATION
The charge is based on self-monitoring of the polluters
in accordance with a methodology produced by the Ministry of Environment.
Random inspections are conducted by OoE and SEI. The amount of
charges during 1992-93 was rather low. The polluters paid quite
law-abidingly. The administrative costs for assessing, collecting,
and controlling the charges are low - approximately 1% of the
income. However, the bad payment of imposed charges is a problem
(approximately 2/3 of charged subjects are insolvent) and enforcement
is only possible through juridical way.
LEGAL BACKGROUND
Law No 311/92 S.B. on Air Pollution Charges
Law No 309/91 S.B. Air Protection Act
Law No 134/92 S.B. on the State Administration of
Air Protection
Law No 128/91 S.B. on the State Environmental Fund
Law No 148/94 Z..z. Air Protection Act - The
novelization.
RESPONSIBLE BODIES
Design of the instrument: MoE
Revenue collection: OoE
Enforcement: SEI, OoE
Revenue use: SEF
PERSPECTIVES
For 1995 there are plans to introduce new regulations
which would require emissions to be measured continuously.
In the future it will be necessary to prepare an
analysis of Law No 311/92 S.B., then to decide upon further steps.
INFORMATION SOURCES
Law No 311/92 S.B., Law No 309/91 S.B., Law No 134/92
S.B., Law No 128/91
Personal inquiry MoE.
SPECIFICATION
The charge is imposed upon operators of so-called
small sources of pollution.
STATUS
In force since 6.5.1992.
AIM
To provide economic motivation for polluters to reduce
air emissions.
SUBJECT
Charges are paid by operators of small sources (thermal
units not exceeding 0.2 MW) of air pollution who pursue profit.
OBJECT
Fossil fuel emissions, proportional to the source's
magnitude and toxicity of the used fuel.
LEVEL
Up to 10,000 Sk per year and source.
INCOME
Unknown
USE OF INCOME
Charges go to a municipal budget. This income is
used for the benefit of the environment.
IMPLEMENTATION AND EFFECTIVENESS
Implementation is optional and depends on the decision
of each municipality mayor. Apart from large cities and communities
in industrial agglomerations, the charge is only rarely enforced.
In some municipalities, no differentiation of the toxicity of
used fuel is made, so that for instance wood and coal is charged
at the same level.
LEGAL BACKGROUND
Law No 311/92 S.B.
RESPONSIBLE BODIES
Design of the instrument: MoE
Revenue collection: municipality
Enforcement: municipality
Revenue use: municipality
PERSPECTIVES
It is under consideration whether to impose charges
on all operators of small sources.
INFORMATION SOURCES
Law No 311/92 S.B., Personal inquiry MoE
SPECIFICATION
Relates to substances damaging the Earth's ozone
layer and products containing such substances.
STATUS
Has not come into force yet.
AIM
To provide economic motivation for polluters to reduce
the use of ozone depleting substances (ODS).
SUBJECT
Producers and importers of ODS. Producers of products
containing ODS.
OBJECT AND LEVEL
USE OF INCOME
Charges will go into SEF and be used to support operators
who recycle and regenerate ODS.
LEGAL BACKGROUND
None. At present, the "Earth Ozone Layer Protection
Act" is under preparation. This Act is planned to come in
force in 1.1.1995.
RESPONSIBLE BODIES
Design of the instrument: MoE
Revenue collection: SEF
Enforcement: SEI, OoE
Revenue use: SEF
INFORMATION SOURCES
Draft of the Earth Ozone Layer Protection Act; Personal
inquiry MoE.
STATUS
In force since 6.5.1992.
AIM
To provide economic motivation for the observance
of prescribed emission limits for large and medium-sized air pollution
sources.
SUBJECT
Operators of large and medium-sized air pollution
sources.
OBJECT AND LEVEL
If a source operator exceeds the prescribed emission
limits, the total amount of standard charges for air pollution
will increase up to 50%.
INCOME
1992: 0 Sk
1993: 0 Sk
USE OF INCOME
Additional charges go into the State Environmental
Fund. They serve as financial support for clean air activities.
IMPLEMENTATION AND EFFECTIVENESS
The importance of additional charges shall increase
in accordance with the tightening-up of emission limits. They
should reach Western European levels by 1998.
The absence of continual emission limits measurements
prohibits authorities from properly monitoring polluters and enforcing
additional charges. The extra charge is applied for new and existing
sources.
LEGAL BACKGROUND
Law No 311/92 S.B. on Air Pollution Charges
Law No 309/91 S.B Air Protection Act
Law No 134/92 S.B. on the State Administration for
Air Protection
Law No 128/91 S.B. on the State Environmental Fund
Law No 148/94 Z.z. Air Protection Act - The
novelization
EXECUTING AUTHORITIES
Design of the instrument: MoE
Revenue collection: OoE
Enforcement: SEI, OoE
Revenue use: SEF
PERSPECTIVES
In the future it will be necessary to prepare an
analysis of Law No 311/92 S.B., then to decide upon further steps.
INFORMATION SOURCES
Law No 311/92 S.B., Law No 309/91 S.B., Law No 134/92
S.B., Law No 128/91 S.B., Personal inquiry MoE
SPECIFICATION
This charge is part of a permit system and is paid
for the consumption of water exceeding the standard limits.
STATUS
In force since 1973, amended both in 1979 and 1989.
AIM
The charges would provide economic motivation for
users to manage water on the basis of established standards.
SUBJECT
Each subject taking water from a water-course whose
volume exceeds the standard limits (more than 15,000 m3
yearly or 1250 m3 monthly)/
does not pay for water taken for running ponds and swimming pools,
fire uses and skating rinks and army uses.
OBJECT
Water from water-courses
LEVEL
Since 1993, the prices are determined by "material
regulation". These charges are followed as water intake prices
and are materially regulated, i.e. they are quotes and not market
prices. All four "Povodie" ("River Basin") Enterprises have the same prices, 0.92 Sk/m3 in 1992, and 1.92 Sk/m3 in 1993.
INCOME
1992: 779 mln Sk
1993: 1100 mln Sk
USE OF INCOME
Financial support provided by the River Basin Enterprises
for measures and actions aimed at the protection of water sources.
IMPLEMENTATION AND EFFECTIVENESS
The charges do not operate in the most effective
way possible (they do not stimulate rational water management)
because they are fixed at maximum levels for the whole territory
of the Slovak Republic.
LEGAL BACKGROUND
Law No 138/73 S.B., Water Act
Government regulation No 35/79 S.B., on Charges in
Water Management
Government regulation No 91/88 S.B., on Charges in
Water Management
Decree MoF No 1/93 S.B.
RESPONSIBLE BODIES
Design of the instrument: MoE, MoF
Revenue collection: River Basin Enterprises
Enforcement: SEI
Revenue use: SB
PERSPECTIVES
Charges for the withdrawal of water from water-courses
will increase and differentiate according to particular costs
of particular River Basin Enterprises.
INFORMATION SOURCES
Regulations as mentioned above; Personal inquiry
at MoE, and the River Basin Enterprises.
SPECIFICATION
The charge is part of a permit system and is paid
for water consumption which exceeds the standard limits.
STATUS
In force since 1973, amended both in 1979 and 1989.
The current rate has been in force since 1.1.1989.
AIM
The charges would provide economic incentives for
managing water more carefully and motivate the saving of water.
SUBJECT
Each subject taking ground water whose volume exceeds
the standard limits (more than 15,000 m3 yearly or 1250 m3 monthly)/ does not pay for water taken for: water supply systems,
housing estates supply system, army uses, and other subjects according
to Ministry of Health regulation No 45/66 S.B.
OBJECT
Water taken from ground sources.
LEVEL
2 Sk per 1m3 of extracted ground water.
INCOME
1992: 54 mln Sk
1993: 21 mln Sk (this reduction is because the enterprises are not able to pay)
USE OF INCOME
The financing of protection of ground water reserves.
Charges go to the SEF.
IMPLEMENTATION AND EFFECTIVENESS
Because of all the exceptions to the charges mentioned
above, charges are only paid for 5% of the extracted ground water.
Therefore, the charges do not fulfil the function of an effective
economic tool.
LEGAL BACKGROUND
Law No 138/73 S.B., Water Act
Government regulation No 35/79 S.B., on Charges in
Water Management
Government regulation No 91/88 S.B., on Charges in
Water Management
Ministry of Health regulation No 45/66
RESPONSIBLE BODIES
Design of the instrument: MoE
Revenue collection: River Basin Enterprises
Enforcement: SEI
Revenue use: SEF
PERSPECTIVES
In the future it will be necessary to establish new
charge rates and to reduce the current range of exceptions to
paying the charges to a minimum.
INFORMATION SOURCES
Regulations as mentioned above; Personal inquiry
MoE.
SPECIFICATION
This charge is part of a permit system. The charges
are levied based on self-monitoring of the polluters. The amount
of charges depends on the quantity of pollutants in the waste
water and on the degree to which the quality of water it is discharged
to has deteriorated.
STATUS
In force in its present form since 1989.
AIM
The charges stimulate water polluters to construct
technology for cleaning water prior to discharging it (waste water
treatment plants) and also create well-balanced economic conditions
between subjects with waste water treatment plants and those without
plants. The second function is to generate income.
SUBJECT
Enterprises releasing waste water into surface waters.
OBJECT
LEVEL
The amount of charge in thousands Sk per year equals:
for a: 21,5 x Z0,8265 (Note: figures are derived from empirical investigations)
Z: the amount of pollution subject to the payment of charges in tons per year
for b: 2,34 x Z0,7514
for c: the amount of pollution in tons per year x K
K: within 5 to 10 mg/l = 1,00 Sk/m3
10 to 20 mg/l = 1,50 Sk/m3
20 to 35 mg/l = 2,00 Sk/m3
35 to 50 mg/l = 2,50 Sk/m3
more than 50 mg/l = 3,00 Sk/m3
for d: the amount of pollution in tons per year x M
M: rate 135 Sk/k mol alkalinity resp. acidity
for e: the amount of pollution in tons per year x S
S: rate 600 Sk/t within flow up to 0,01m3/s
300 Sk/t 0,01-0,1m3/s
200 Sk/t 0,1-1,0m3/s
150 Sk/t 1,0-10,0m3/s
120 Sk/t more than 10,0m3/s
INCOME
1992: 405 mln Sk
1993: 293 mln Sk
The income decreased because of the financial hardship
experienced by enterprises and the recession in production.
USE OF INCOME
The support of water protection through the mediation
of SEF.
IMPLEMENTATION AND EFFECTIVENESS
The system was established in 1979 and amended in
1988. It functioned quite well for some time, however, recently
the incentive function ceased to be fulfilled. The effectiveness
of the charges was reduced significantly due to the influence
of inflation and the liberalization of prices.
LEGAL BACKGROUND
Law No 138/73 S.B., on Water
Law No 128/91 S.B., on the State Environmental Fund
Government regulation No 35/79 S.B. on Charges in
Water Management
Government regulation No 91/88 S.B. on Charges in
Water Management
RESPONSIBLE BODIES
Design of the instrument: MoE
Revenue collection: River Basin Enterprises
Enforcement: SEI
Revenue use: SEF
PERSPECTIVES
At present the new Law on water is being prepared.
In conjunction with this the fundamental amendment of the Law
on charges for releasing waste waters will be carried out.
INFORMATION SOURCES
Regulations as mentioned above; Personal inquiry
MoE.
SPECIFICATION
Citizens and other subjects are charged by a municipality
for these public services.
STATUS
The level of these charges were constant until 1990.
Since 1991 the charges have been significantly raised. They cover
all costs, including charges for releasing waste waters into surface
waters, even profits, if needed. The payment, however, can be
partly financed independently in each municipality. Since 1993,
the pricing system is by "material regulation" (maximum
price).
AIM
Reimbursement of real costs for public service resulting
in the motivation for rational water policy.
SUBJECT
All users of sewerage.
OBJECT
The volume of waste waters released into sewerage
LEVEL
The charge is usually included in the cost of drinking
water and is determined by each municipality. For instance:
| 1990 | 1991 | 1992 | 1993 | |
| water rate Sk/m3 | 0.80 | 1.50 | 2.00 | 4.00 |
| sewerage Sk/m3 | 0.80 | 1.50 | 2.00 | 3.00 |
INCOME
Not directly determined. The average consumption
of water per citizen was ca 178 l/day in 1992; ca 2.7 mln Slovak
citizens use sewerage.
USE OF INCOME
Reimbursement of costs for public services or waste
water treatment plant operations.
IMPLEMENTATION AND EFFECTIVENESS
Significant price increases since 1990 have led to
a reduction in water consumption. In many cases municipalities
provide subsidies themselves. On the other hand, the public services'
providers claim that the current price does not even cover all
costs.
LEGAL BACKGROUND
Law No 138/73 S.B., on Water
Decree MoF No 1/93
RESPONSIBLE BODIES
Design of the instrument: MoF, municipality
Revenue collection: operator of appropriate plant
PERSPECTIVES
It is possible to expect another price increase for
these services.
INFORMATION SOURCES
Law No 138/73 S.B., Decree MoF No 1/93; Personal
inquiry MoE, MoF.
STATUS
In the present form it has been in force since 1989.
AIM
To provide economic motivation for polluters to minimize
the volume of waste water released.
SUBJECT
The same organizations which pay waste water effluent
charges (described earlier).
OBJECT
Additional charges depend on the degree of deterioration
of the relevant water-course which is caused by the discharge
of the waste water.
The rate is determined in accordance with the concentration
of pollutants in the water-course. Its amount is as many percent
of the basic rate as how many times the so-called deterioration
unit is embraced in computed quality deterioration of water in
water-course.
Deterioration units are:
INCOME
The income from additional charges is incorporated
into the whole income from charges for releasing waste waters
(q.v. waste water charges). Of this whole amount ca 20% is contributed
by the additional charges.
USE OF INCOME
Same as with basic charges (described earlier).
IMPLEMENTATION AND EFFECTIVENESS
The function of the additional charges is hampered
by many exemptions including:
LEGAL BACKGROUND
Law No 138/73 S.B. on Water Management
Government regulation No 35/79 S.B. on Charges in
Water Management
Government regulation No 91/88 S.B. on Charges in
Water Management
EXECUTING AUTHORITIES
Design of the instrument: MoE
Revenue collection: River Basin Enterprises
Enforcement: SEI
Revenue use: SEF
PERSPECTIVES
Along with the preparation of a new Water Act, new
ways of using additional charges use are being considered. It
is also not possible to exclude their contingent cancellation.
INFORMATION SOURCES
Regulation as mentioned above. Personal inquiry MoE.
SPECIFICATION
The waste producer pays the charges. Landfill operators
collect the charges and incorporate them into the price of storing
waste at the dump.
STATUS
In force since 6.5.1992
AIM
The existing charges have two basic functions:
SUBJECT
The basic charge is paid by landfill operators.
The additional charge is paid by waste producers,
who store waste in landfills that do not fulfil the required criteria.
OBJECT
The charge is paid for waste divided into five categories:
LEVEL
The basic charge will be phased in over five years.
The additional charge is an index for multiplying the basic charge.
| Category of waste |
Basic charge (in Sk/ton) | Additional charge index |
||||
|---|---|---|---|---|---|---|
| 1992 | 1993 | 1994 | 1995 | 1996 | ||
| 1 | 0 | 0 | 1 | 1 | 1 | 2 |
| 2 | 2 | 4 | 6 | 8 | 10 | 9 |
| 3 | 4 | 8 | 12 | 16 | 20 | 14 |
| 4 | 8 | 16 | 24 | 32 | 40 | 11 |
| 5 | 50 | 100 | 150 | 200 | 250 | 13 |
INCOME
The income of the basic charge is unknown.
The income of the additional charge was:
1992: 2 mln Sk
1993: 19 mln Sk
USE OF INCOME
The basic charge is revenue for the budget of the
municipality in which the dump is located. The income is used
for environmental purposes.
The additional charge is revenue for the State Environmental
Fund. The income is used to support the waste policy of the Slovak
Republic.
IMPLEMENTATION AND EFFECTIVENESS
Since this is quite a new charge, the incomes from
storing waste are lower than expected to date. The charges shall
increase, however, and thus it is expected that waste producers
will eventually change their behavior to reduce the amount of
waste produced and hence charges paid.
LEGAL BACKGROUND
Law No 238/91 S.B., on Waste Management
Law No 309/92 S.B., on Charges for Deposit of Waste
Law No 128/91 S.B., on the State Environmental Fund
RESPONSIBLE BODIES
Design of the instrument: MoE
Revenue collection: Operator of the dump
Enforcement: OoE
Revenue use:
basic charge: municipalities
additional charge: SEF
PERSPECTIVES
Legal regulations concerning waste might be significantly
amended, but likely only after 1996.
INFORMATION SOURCES
Law No 238/91 S.B., Law No 309/92 S.B., Law No 128/91
S.B.; Personal inquiry MoE
OFFICIAL DESIGNATION
Charges for dispossession of agricultural land.
STATUS
In the present form it has been in force since 15.12.1992
AIM
The aim of the charge is to discourage the use of
agricultural land, which is limited in the Slovak Republic, for
purposes other than agricultural.
SUBJECT
Each subject who occupies agricultural land for other
purposes, either temporarily or permanently.
OBJECT
Land which is officially designated as agricultural
land.
LEVEL
The computation is made in accordance with the so
called basic charge. Tables provide two parameters:
INCOME
1993: 200 mln Sk
USE OF INCOME
The income goes to the State Agricultural Land Protection
Fund (SALPF). The revenue is used for:
IMPLEMENTATION AND EFFECTIVENESS
Paying the charge has a compensatory character. It
is mainly implemented in the form of permits, which are strict,
as the number of applications in the matter of agricultural land
occupation grows larger.
LEGAL BACKGROUND
Law No 307/92 S.B., on the Protection of Agricultural
Land.
Decree of the Government of SR No 19/92 S.B.
RESPONSIBLE BODIES
Design of the instrument: MoF, MoA
Revenue collection: Revenue authority
Enforcement: Revenue authority
Revenue use: SALPF
INFORMATION SOURCES
Law No 307/92 S.B., Decree of Government of SR No
19/92 S.B.
OFFICIAL DESIGNATION
Charges for exploitation of deposits of raw materials
SPECIFICATION
The charges would affect the prices of selected raw
materials whose exploitation, processing or consumption, present
significant impact on the environment.
STATUS
In force since 1.1.1993
AIM
Economic compensation of externalities caused by
exploration and extracting raw materials.
SUBJECT
Each subject who has started an enterprise for the
exploration and extraction of raw materials or any similar mining
activity.
OBJECT
LEVEL
INCOME
Unknown
USE OF INCOME
Financing environmental activities in municipalities
or on a national scale, as the case may be.
IMPLEMENTATION AND EFFECTIVENESS
Charges cover no environmental criteria just for
the time being, therefore cannot possibly be effective in providing
economic motivation for environmental protection.
LEGAL BACKGROUND
Law No 498/91 S.B., Mining Act 32 a
Decree of the Government of SR No 532/92 S.B.
RESPONSIBLE BODIES
Design of the instrument: MoEc. MoF, State Mining
Offices
Revenue collection: Revenue authority
Enforcement: Revenue authority
Revenue use: Government budget
PERSPECTIVES
In the future it will be necessary to:
INFORMATION SOURCES
Law No 492/91 S.B., Decree of the Government of SR
No 532/92 S.B.
SPECIFICATION
Penalties can take the form of sanctions for infringement
of the determined regulations.
AIM
To provide financial incentives for the observance
of prescribed regulations.
OBJECT
At this time in the Slovak Republic there are a large
number of penalties for the infringement of obligations regarding
the protection of the environment. The concrete object of the
penalties is defined in particular acts and regulations.
LEVEL
The amount is determined by the SEI on a case-by-case
basis.
INCOME
There is no comprehensive data. Some penalties serve
as income to municipalities, some are SEF income.
Revenue to the SEF was:
1992: 20 mln Sk
1993: 29 mln Sk
IMPLEMENTATION AND EFFECTIVENESS
The penalties serve as additional resources to SEF.
In this sense they have some effect in raising revenue.
LEGAL BACKGROUND
Particular laws.
RESPONSIBLE BODIES
Prescribed with a corresponding law.
PERSPECTIVES
To conserve penalties as a tool and keep their efficiency.
INFORMATION SOURCES
Personal inquiry MoE
STATUS
Is being prepared. The next steps in the preparation
process are: