Taxes with environmental aspects
Last update of indicator11.11.2023
Indicator definition
The indicator describes the share of taxes with environmental aspects in GDP and the share of taxes with environmental aspects in total tax revenues (excluding social contribution).
Related policy documents and targets
Strategy of the Environmental Policy of the Slovak Republic until 2030 „Greener Slovakia“
By 2030, Slovakia will consider the possibility of expanding environmental taxes in individual areas and, on this basis, selected measures will be applied to increase their overall volume. The control of polluting installations will be improved and the application practice of fines will be changed. Pollution fines will be increased to such an extent that exceeding the limits is not economically attractive
The national strategy for sustainable development (2001)
One of the principles of SD that is being used is the principle "the polluter pays". It is necessary to transfer all environmental expenses on to producers and consumers, not transferring these on to different parts of the society, different countries or future generations. The prices themselves should reflect the relative scarcity and total value of resources and they should thusly contribute towards environmental protection. Such tools are especially:
· national budget, municipal budgets, businesses' budgets, and different organisations' budgets,
· various reforms of tax breaks, soft loans, subsidies, interest-free loans etc.,
· forms of negative incentives such as payments for pollution and utilisation of natural resources,
· taxes,
· valuation of resources, valuation of labour, valuation of goods etc.
Strategic goals:
18. The completion of comprehensive transformation of the economy
application of economic, finance and tax tools that support sustainable development (for instance, a reform of taxes with an environmental aspect).
24. Decreasing of energy and resource intensity and increasing of the efficiency of the economy of SR; implementation of an environmental tax reform - the creation of an economic environment that respects and stimulates environmental protection, natural resources, and considerate consumer behaviour.
Program Declaration of the Government of the Slovak Republic for years 2021-2024
In the Program Declaration of the Government of the Slovak Republic for 2021 - 2024, the Government of the Slovak Republic states that expenses related to the environment will be spent efficiently and investments will be assessed according to the criterion of value for money. The Government of the Slovak Republic will implement a comprehensive reform of the functioning of the Environmental Fund with an emphasis on transparency and objectively measurable criteria. In addition to the reimbursement of expenditure, the possibility of a pre-allocation scheme for approved projects will be introduced. The Slovak government will consider changes in tax policy towards a green, fiscally neutral tax reform. The Slovak government will increase investment in mitigation and adaptation measures from the sale of emission permits. As air discharge fees have not changed since 2008 and are among the lowest in the EU, the government will carry out a gradual indexation. .
Key question
What is the share of taxes with the environmental aspect in GDP and the share of taxes with the environmental aspect in the total tax incomes?Key messages
- The contribution of taxes with an environmental aspect towards GDP in Slovak Republic has been decreasing since 2017 and in 2022 it reached 1.99 %.
- Year-on-year, there was a decrease in the contribution of taxes with an environmental aspect towards GDP
- The biggest contribution within taxes with an environmental aspect towards GDP was from energy tax which in 2022 contributed 1.78 %.
- Slovak republic is among the EU countries with the lower contribution of taxes with an environmental aspect towards GDP.
| Change since 2005 | Change since 2015 | Last year change |
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| The share of environmentally related taxes in GDP has been decreasing since 2005. | The share of environmentally related taxes in GDP has been on a fluctuating trend since 2015. It reached its highest share of GDP in 2017. A downward trend has been observed since 2018. | The share of environmentally related taxes in GDP fell year-on-year. |
Summary assessment
Detailed assessment
In 2022, the energy tax reached 1 951.7 mil. Euro and compared to 2005 it increased by 120.27 %. Year-on-year, the energy tax decreased by 9.4 %. In 2022, transportation tax reached 207.68 mil. Eur and compared to 2005 it increased by 131.5 %. Year-on-year, the transport tax increased by 2.1 %. In 2022, the pollution tax reached 27.22 mil. Eur and compared to 2005 it decreased by 22.5 %. Year-on-year, the pollution tax increased by 5.5 %. In 2022, in total the taxes with an environmental aspect reached 2 186.61 mil. Eur and compared to 2005 they rose by 131.3 %. Taxes with an environmental aspect decreased by 8.2 % year-on-year.
The contribution of energy tax towards GDP in 2022 was 1,78 %, and compared to 2005 it decreased by 0.30 %. Year-on-year there was a decrease of 0.41 %. The contribution of transportation tax towards GDP in 2022 was 0.19 %, and compared to 2005 it decreased by 0.04 %. Year-on-year there was a decrease of 0.02 %. The contribution of pollution tax towards GDP in 2022 was 0.03%, and compared to 2005 it decreased by 0.06 %. Year-on-year there was no change. The total contribution of taxes with an environmental aspect towards GDP in 2022 was 1.99 % of GDP, and compared to 2005 it decreased by 0.41 %. Year-on-year there was a decrease of 0.42 %. The biggest contribution within taxes with an environmental aspect towards GDP was from energy tax.
International comparison