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Slovak Emissions-Trading Tax Flouted EU Scheme, ECJ Says

Law360 (April 13, 2018, 4:23 PM EDT) -- Slovakia violated European Union rules by imposing an 80 percent tax on the trading of greenhouse-gas emission credits, the bloc’s highest court ruled Thursday.

The European Court of Justice said Slovakia’s tax — abolished in 2012 — undermined the goal of an EU scheme to encourage investment in clean-energy technologies by allowing industry participants to buy and sell emissions allowances “free of charge.”

EU countries are allowed to levy taxes based on how an emissions allowance is used, but Slovakia’s tax negated incentive mechanisms in the...
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