Global Daily Tax News, Slovenia Urged To Devise Effective Environmental Taxes, (Jul 15, 2024)

Slovenia should identify tax measures to support the nation's efforts towards achieving net zero emissions by 2050, the OECD has said, in its latest Economic Survey for the nation.

In the new report, the OECD highlighted there has been a lack of emission reductions in the past decade and Slovenia's per-capita greenhouse gas emissions remain at the level they were 35 years ago. The report says: "reduced tax rates for environmentally harmful fossil fuels, including diesel and heating gas, continue to undermine decarbonization efforts."

The report recommended the removal of reduced tax rates for diesel and heating gas and a gradual increase in carbon taxes on sectors not covered by the EU's Emission Trading Scheme (ETS) to align the carbon price level with sectors under the ETS.

The report also says: "The relatively low taxation of transport fuels and the generous commuting allowance encourage passenger and road transport" boost emissions from the transport sector. To promote the use of public transport, the OECD suggested that Slovenia reduce the commuting allowance and introduce congestion-based road pricing.