New taxes coming in 2026 – Additional fees for importers of steel, cement, aluminum and fertilizers and for domestic industries with highest CO2 emissions

Members of the Government have adopted the Bill on the Tax on Imports of Carbon-Intensive Products, which introduces a tax on imports of carbon-intensive products - iron and steel, cement, fertilizers and aluminum, in order, as stated, to ensure equal conditions for doing business on the Serbian market for domestic producers and importers of these products and to encourage the reduction of greenhouse gas emissions, in accordance with EU practice and the Carbon Border Adjustment Mechanism (CBAM).

The Bill on the Tax on Greenhouse Gas Emissions was also adopted.

The aim, it is stated, is to encourage the reduction of greenhouse gas emissions, improve environmental protection and equal treatment of all economic entities in accordance with the “polluter pays” principle and European regulations.

The implementation of this law should begin on January 1, 2026. As eKapija has already written, taxpayers will be legal entities and entrepreneurs who are required to have a GHG emission permit, and who operate in areas such as: production of artificial fertilizers and nitrogen compounds, cement production, production of pig iron, steel and ferroalloys, aluminum production and electricity production.

The tax will be calculated at a rate of four euros per ton of CO2 emitted, or per ton of CO2 equivalent for other gases. The calculated base will be the difference between total emissions and the reference, which represents the amount of unavoidable emissions and depends on the type of production process.

Companies from the electricity generation sector that generate the majority of their revenue from this activity will be able to use a tax credit of up to 20% of the invested funds for measures that contribute to the reduction of CO2 emissions, such as investing in more efficient technologies, switching to renewable energy sources or modernizing equipment. This credit cannot exceed 80% of the total tax liability.

The law also provides for additional incentives for decarbonization, which will be allocated from the budget of the Republic of Serbia for projects that contribute to the energy transition, the development of renewable sources, innovative low-carbon technologies, as well as to support a just transition and the protection of vulnerable households.

Vlada Republike Srbije

Government of Serbia

Bill on the Tax on Imports of Carbon Intensive Products

Bill on the Tax on Greenhouse Gas Emissions