Carbon allowance tax abolished; previously paid tax is refundable

With effect from 31 July 2026, Parliament abolished the carbon allowance tax retroactively to its introduction. The special tax, introduced in 2023, primarily burdened major industrial emitters that received free allowances under the European Union Emissions Trading System (EU ETS). Under the legislative amendment, affected businesses may also claim a refund of tax previously paid.

At the taxpayer's request, NAV will make the refund with interest; the rate of interest is the central bank base rate plus two percentage points. Importantly, the refund is not automatic: affected companies must submit the relevant application no later than the beginning of January. This is a peremptory deadline; if it is missed, no refund can be obtained. Affected businesses should therefore promptly review their previous payments and examine the conditions for obtaining a refund.

If you have any questions regarding the above, please contact your usual contact at Crowe FST, or Balázs Földes, Tax Group Partner.