EU Plans Easing Carbon Border Tax Rules
(MENAFN) The institutions of the European Union reached a consensus on Wednesday regarding a new legislative streamlining initiative that will exclude the majority of firms from falling under the carbon tax applied at the border.
According to the European Council, member state delegates and the European Parliament (EP) have successfully settled on a legislative modification aimed at simplifying the carbon border adjustment mechanism (CBAM).
An official statement clarified that under the revised regulation, companies importing fewer than 50 tons annually of items included in the carbon tax framework at the border will be excluded from CBAM obligations.
"The proposal seeks to provide simplification and cost-efficient compliance improvements to the CBAM regulation, without compromising its climate goals, as about 99% of embedded emissions in the imported CBAM goods would remain covered," the statement emphasized.
The purpose of this amendment is to reduce bureaucratic and administrative challenges, as well as to lower the costs of compliance for businesses operating within the EU, particularly those classified as small- and medium-sized enterprises (SMEs).
Thanks to this regulatory relaxation, approximately 90 percent of importing firms—mainly SMEs—are expected to be exempt from paying the carbon tax at the point of entry.
The updated rules will come into force following formal endorsement by both the EU Council and the European Parliament.
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