Slovakia hikes tax on electricity producers to fight high prices

(Reuters) - Slovakia's parliament on Tuesday approved a special 90% tax on some electricity revenue to cover government aid to people struggling with soaring energy bills.

The tax will put Slovakia in the company of other European Union countries that have set caps on electricity prices, which have jumped this year on the back of soaring gas costs following Russia's invasion of Ukraine.

Slovakia's tax surcharge will apply to revenue generated on top of a cap set by the government within a range of 50-250 euros per megawatt hour, according to the legislation.

The government will also determine what cap will apply to various types of power plants. An exemption is applied for electricity sources with installed capacity below 0.9 megawatts, or those fuelled by biomass, according to the bill.

Authorities are also looking at slapping special taxes on gas pipeline operations as well as crude, gas and coal producers. The respective bills are still to be debated in parliament.

(Reporting by Robert Muller in Prague; Editing by Mark Heinrich)