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Hungary’s tax on free carbon allowances might breach EU rules, top court says

( April 16, 2026, 08:19 GMT | Official Statement) -- MLex Summary: Hungary cannot tax free carbon emission permits in a way that undermines their purpose, the EU’s top court has said. Such a tax would weaken the system designed to encourage companies to cut emissions while protecting industry from unfair competition. While countries can introduce taxes, they must not cancel out the benefits of free permits, judges said. The case was brought by fertilizer producer Nitrogénművek before Hungarian courts. The national court must now decide whether the Hungarian measure has that effect.Press release attached. Judgment attached (in French). Case reference is C-519/24....

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