In Slovenia, the obligation to pay the environmental tax for fossil fuels was temporarily abolished and the VAT rate for heating energy products was reduced in the second half of 2022

January 4, 2023

In the second release this year, we (office) summarise the changes in taxes that took place in the second half of 2022: the obligation to pay the environmental tax (CO2 tax) for fossil fuels was temporarily abolished, and additionally the VAT rate for heating energy products was reduced.

The difference between the harmonised index of consumer prices (HICP) and the harmonised index of consumer prices at constant tax rates (HICP-CT) was the largest in September, when the lower VAT rate (i.e. 9.5%) for electricity, natural gas, district heating and wood biomass came into effect. At the overall level, the two indices differed by 1 percentage point. At the lower level, in the group housing, water, electricity, gas and other fuels, the difference was 5.8 percentage points. If the tax had remained unchanged, goods and services from this group would have decreased by 0.6%, and with lower VAT the price reduction was 6.4%.

In 2022, excise duties on fuel and energy, taxes, and the VAT rate were reduced, which had a greater impact on inflation than the April increase in excise duties on cigarettes. The annual inflation measured by the HICŽP-CT was 12.1%, and by the HICŽP 10.8%, which means that with unchanged taxes and excises, prices would increase by 12.1%, whereas with lower taxes the increase was 1.3 p.p. lower.

Source: Statistical Office of Slovenia
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.