The last night was published Magyar Közlöny issue 119 the LV of 2024 on the amendment of certain tax laws. lawwhich, among other things, amends and supplements the provisions of the effective personal income tax (Act CXVII of 1995 – Szja.) and the excise tax act (LXVIII of 2016 – Jöt.).
One of the changes is that by amending the Excise Tax Act they will raise the excise tax on several energy products.
Excise tax changes affecting energy products
Compared to previous numbers, the rate of increase looks like
- In case of offering, selling or using natural gas as a fuel for road vehicles: +4 Ft/nm3 (12.5% increase)
- For coal: + HUF 325/thousand kilograms (11.2% increase)
and most importantly
IN THE CASE OF ELECTRICAL ENERGY: +39.5 FT/MEGAWATT HOUR (11% INCREASE)
This means that energy traders’ excise tax burdens increase significantly if they sell energy products to non-residential consumers. This is expected to be reflected in the pricing of corporate power purchase contracts as well the increased costs will likely be incorporated into prices.
The increase can be considered an outlier if we take into account that the 2025 budget law bill expects inflation of 3.2%, while the excise tax increase will be more than three times that, i.e. 11%.
§ 63. (1) The Jöt. § 110, paragraph (1), points f)-h) are replaced by the following provision:
“f) 36 HUF/m3 in the case of offering, selling or using natural gas as a fuel for road vehicles, otherwise 0.3879 HUF/kWh,
g) 398 HUF/megawatt hour for electricity,
h) for coal HUF 3,230/thousand kilograms,”
Clearer rules regarding the taxation of residential energy production and energy savings
In addition, two more interesting provisions appeared in Szja. among amendments to the law. Yesterday we already wrote about the fact that according to the current regulations, non-individual entrepreneurs are active users – essentially residents with solar panels and storage, who can sell their produced and stored energy under certain conditions – and energy communities Up to 12,000 kWh of electricity sold are tax-free.
However, as we discussed yesterday, in the increasingly decentralized energy system that involves the public more and more, there are still plenty of tax issues that need to be clarified, such as where the line is drawn between tax-free energy production and production that is considered an economic activity and is already subject to taxation. between. It was also not clear whether the private individual directly or indirectly receives income from the energy efficiency investment of the device and is subject to tax liability.
The recently published legislative amendments provide a partial crutch in answering the above questions, and at the same time promote the contribution of private individuals to maintaining the stability of the energy network (providing system-level services) and achieving energy efficiency goals (ECR savings).
What has changed?
In the first case, if as an active user, – for the sake of simplicity, let’s take a private individual with solar panels – provides system-level service directly or through a third party (for example, an aggregator) to MAVIR as a transmission system operator or to the network distributor, then the your income from it
tax-free up to the minimum wage on an annual basis.
According to the recently signed 3-year wage agreement, the minimum wage will rise by 9 percent in 2025 to HUF 290,800, so the annual amount it means nearly HUF 3.5 millionas long as income from energy-related investments will be tax-free.
Szja tv. Annex No. 1, point 4 4.49. subsection is replaced by the following provision:
b) the total amount of income from the provision of system-level service or distribution flexibility service directly or through a third party authorized to carry out such activity is up to the minimum wage per year, taking into account point 9.9. subsection also available;”
The other, Sja. and in the case of law, if given an individual makes an investment in his home that results in energy savings (for example, switching to a heat pump or renovating insulation) and from that has direct or indirect incomethen it is
also tax-free.
Szja tv. Point 4 of Annex No. 1 is the following 4.52. subsection is added:
“4.52. the income earned by the end-user private individual resulting in certified energy savings in accordance with the Act on Energy Efficiency – not carried out as an individual entrepreneur – (thus in particular investment, modernization, renovation), thus in particular certified energy savings registered in favor of the private individual (property right) , the price discount for the service or product purchased in order to save energy, as well as the certified energy saving by the mentioned private person as a property right income obtained in return for its transfer.”
Cover image source: Portfolio
Source: www.portfolio.hu
