Slovak fuel transit in jeopardy if new pipeline tax is handed, minister warns –


Adopting a further tax supplied within the European Fee’s tips on windfall taxes would cripple Eustream and considerably jeopardise the fuel transit system that runs via Slovakia, Economic system Minister Karel Hirman stated.

“That is an illogical transfer from the state’s standpoint. It taxes an entity affected by the disaster, which doesn’t profit from it in any manner and doesn’t take any windfall revenue,” stated Miroslav Bodnár, a member of the corporate’s board of administrators.

Nationwide Council member Milan Vetrák (OĽaNO), one of many council members who tabled the proposal defined that pipelines aren’t taxed with property tax. The invoice proposes to tax each kilometre of pipelines by €6,000, which might usher in roughly €171 million a yr.

Eustream claims to have misplaced 87% of its income within the final 5 months and, if it had been to pay any extra taxes to the state in such circumstances, it will report a €38 million loss by the tip of the yr.

The tax was already handed by the Nationwide Council in December however was vetoed by President Zuzana Čaputová, arguing it solely impacts one firm – Eustream.

It has additionally been criticised by the Economic system Ministry, which has repeatedly identified that Eustream is just not benefiting from the present disaster. Quite the opposite, the gradual substitution of Russian fuel by liquefied alternate options and decreased demand from Ukraine are taking away a big a part of fuel transit demand.

Knowledge present that the corporate transported solely 8.3 billion cubic metres of fuel within the final 5 months – an virtually 50% drop in comparison with the identical interval final yr.

“Such an ill-considered resolution on further taxation could not solely fatally have an effect on the monetary state of affairs of the corporate but in addition considerably jeopardise the transportation of fuel via Slovakia,” performing Economic system Minister Karel Hirman stated in December.

The proposal is presently being mentioned by the Nationwide Council with Eustream making an attempt to foyer Nationwide Council members to not help the brand new tax once more. If the invoice is handed once more, Eustream desires to struggle again.

“There are a number of choices, both in Slovakia or within the Union,” Bodnár concluded.

(Michal Hudec |

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