The Serbian government has announced that it has enacted two interconnected climate taxation laws that will come into force on January 1, 2026, establishing a carbon price for major industrial emitters and a border levy on carbon-intensive imported goods. Together, the laws create a unified framework aimed at reducing greenhouse gas (GHG) emissions, driving industrial decarbonisation and aligning Serbia more closely with emerging EU carbon pricing policies.
Domestic emissions tax targets major industrial sectors
The first law introduces a greenhouse gas (GHG) emissions tax for operators that hold emissions permits under Serbia’s environmental regulatory regime. The measure applies to fertilizer, cement, primary iron and steel, aluminum and electricity producers, requiring companies to pay a levy based on verified annual emissions of carbon dioxide, nitrous oxide and perfluorocarbons.
The tax is assessed after deducting a reference emission level, representing emissions considered unavoidable when operating with best available technology. The rate is set at €4 per mt of CO₂-equivalent, converted into Serbian dinars at the official exchange rate at the end of the tax period.
Taxpayers must file an annual return by May 31, supported by verified emissions data. Electricity generators whose revenue is primarily from power production may claim a 20 percent tax credit for eligible decarbonisation investments, capped at 80 percent of their total tax liability. The law also provides scope for additional state incentives to support renewable energy, low-carbon technologies, energy-efficiency upgrades and just transition initiatives.
Border carbon tax mirrors EU CBAM product scope
The second law establishes a carbon tax on imported carbon-intensive products, closely mirroring the EU CBAM product list. It covers a wide range of iron and steel products, cement, fertilizers and aluminum, with an exemption for importers whose annual volumes fall below five mt of covered goods.
The tax base is calculated from the embedded emissions associated with manufacturing the imported goods. Importers may report independently verified actual emissions, or default values provided in the legislation. Verification must be performed by bodies accredited under the International Accreditation Forum (IAF) system.
Like the domestic tax, the rate is €4 per mt CO₂-equivalent. To prevent double taxation, importers can claim a carbon price credit for any carbon payments made in the country of origin, provided documentation includes proof of payment, the applied emissions methodology and the emission quantities. Credits cannot exceed the tax that would have been due if the goods were produced in Serbia.
Annual tax returns must be submitted electronically by May 31, with customs authorities required to share import and product data with the tax administration to support enforcement.