Environment pollution tax is payable by those who emit certain environment polluting substances in the air, surface waters, temporary watercourses or into the soil during use of the environment that is subject to a permit. Environment pollution tax has three types according to the nature of the pollution:
- air pollution tax,
- water pollution tax,
- soil pollution tax.
(1) Air pollution tax
Air pollution tax is payable on fixed location air pollution point sources subject to an announcement obligation. These are sources of air pollution in the case of which the characteristics of emission of an air polluting substance can clearly be determined with measuring and technical calculation and which are classified by legal regulation as harmful to human health or the environment due to which an emission limit is determined for them. However, legal regulation exempts certain activities from the obligation to pay air pollution tax (e.g. combustion units operated by the population and state budget organizations). Air pollution tax is assessed based on the kg quantity of the air polluting substances emitted annually at a rate of 50 forints/kg in the case of sulphur-dioxide, 120 forints/kg in the case of nitrogen-oxides and 30 forints/kg in the case of non-toxic solid substances.
(2) Water pollution tax
Water pollution tax payment obligation arises on activities subject to a water right license polluting surface waters. These activities also include, among others, water facilities for own purposes, i.e. the operation of units that are intended to supply water for industrial, household and agricultural purposes (e.g. the placement, transfer and cleaning of waste water and irrigation),to eliminate water damages, to clear water and utilize water energy. However, exemption applies to certain activities, for example, in the case of the emission of water polluting substances in the case of which the polluted water is reused. Water pollution tax is assessed as the product of the kg quantity of the water polluting substances emitted annually and the unit tax applicable to individual water polluting substances, adjusted by the area-sensitivity multiplier relating to the place of emission and the sludge disposal multiplier.
(3) Soil pollution tax
Soil pollution tax is payable by entities that are not connected to the public water and sewage system technically available and apply sewage disposal falling under the competence of local water management authorities or subject to water right licensing. Soil pollution fee is assessed as the product of the quantity of water used annually (less the quantity of water used for irrigation defined in the relevant legal regulation and the quantity of waste water transported for disposal in accordance with legal regulations certified by invoices) and a unit tax rate of 1,200 forints/m3, adjusted by the area-sensitivity multiplier relating to the given town (which may be between 1 and 5 depending on water resource sensitivity and the type of license).
Air pollution tax, water pollution tax and soil pollution tax relating to activities performed based on a water right license are to be declared and paid to the state tax authority while the soil pollution tax relating to sewage disposal activity falling in the competence of local water management authorities is to be declared and paid to the local municipality. Tax advance must be declared and paid to HU TA quarterly until the last day of the given calendar quarter and a return must be filed on the difference of the actual environment pollution tax liability of the calendar year and the tax advance paid until 31 March of the following year. A quarter of the actual tax liability of the previous year is payable as tax advance or, if a meter for the measuring of harmful substance emission is operated continuously, tax is payable on the basis of the actually measured emission data of the given quarter. No tax advance is payable to local municipalities, only an annual return filing obligation applies the deadline of which is also 31 March.