TB4369 GS/CB 12/04/2018
Country Report Slovak Republic
Road Transport Charges
Final
On behalf of:Phare Multi-Country Transport Programme
NEI Transport, December 1999
CB/TB4369r26
Table of contents
Pages
Summary
1Background
1.1Road Transport Policy
1.2Road Transport Legislation
2Database
2.1Road network
2.2Traffic
2.3Fleet
2.4Fuel consumption
3Actual and planned RTC systems
3.1Fuel Taxation
3.2Vehicle Taxation
3.3Other taxation
3.4Future perspective
4Revenues
5Allocation mechanism
6Expenditures and infrastructure cost
7Cost recovery ratios
8EU compliance
9Conclusions and recommendations
CB/TB4369r26
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Summary
Country characteristicsRoad fiscal policy (main issues)
Slovakian transport policy is currently under revision
No special fees or charges for trucks. Everything is included in the Road Tax which is laid down in Act No. 87/1994 of the Code on Road Tax
No Tolls but a vignette system for use of motorways and expressways
Fuel taxation is regulated in Act No. 316/1993 of the Code on consumption tax from hydrocarbon fuels and lubricants / Cost recovery
Ratio Actual/Normative maintenance: 31%
Institutional and legal setting
Key legislation in the field of road transport is the Road Act (1996)
The Road Fund channels all funds for the road sector (maintenance and investment); Act No. 153/1993 of the Code on the State Fund of Road Economy establishes the Road Fund.
EU Comparison
Excise tax on fuel / (Heavy) vehicle taxation
Remarks:
Vehicle taxation (“Road tax”) higher than EU minimum
No provision for clean engine and suspension
Foreign vehicles are also subject (prorata temporis) to this tax
Direction of move
Reflection on developments during past years, levels already achieved and future/anticipated developments.
Securing a fixed percentage of the fuel tax for the Road Fund (80%) is a measure under discussion
Introducing a 15-day vignette for use of motorways
Conclusions and Recommendations
The Slovakian government is currently redefining the transport development strategy. It is recommended to aim at the development of a feasible process of internalisation of external costs according to the EU and ECMT recommendations and to aim at speeding up the implementation of the user-pays principle.Currently Slovakia has a Road Fund. The Road Fund is an important instrument in the process of investment and maintenance of the Slovakian roads. It should be considered to strengthen its role even more. This step is currently under way with the discussion of a new law aiming at the allocation of a fixed percentage of the Fuel Tax (80%) to the Road Fund. This is indeed a decision that would provide a tremendous and positive change in the Road Fund budget structure as it will enable to cover all road expenses (capital investment and maintenance) with the sole resources of the Road Fund and without the need of any further loans, making the road sector practically self-sustaining.
Vehicle taxation has been provided for in Act nr. 87/1994. For freight vehicles the rate of this tax is based on the number of axles and the total weight. This taxation applies also to foreign vehicles entering Slovakia on a time basis. It is recommended to base the tax rate also on the type of suspension of the vehicles in order to comply with Directive 99/62 and to abandon the taxation of foreign vehicles which is not in line with EU “fair competition”principle. To achieve harmonisation with the EU the updating of tax rates is in consideration. It is recommended to go ahead in this direction. The tax rates are presently considerably higher than the EU-minimum rates.
Slovakia has a system of charges for special use of motorways by vehicles, which dimensions or weight exceed the allowed limits. In itself a charge like this is reasonable. The fee of this charge is different for foreign and domestic vehicles, foreign vehicles paying twice or thrice as much as domestic ones. This is not in accordance with the European non-discrimination principles. It is recommended to harmonise the levels.
Slovakia also has a transit charge for foreign vehicles. This is also not in accordance with the European non-discrimination principles. Therefore it is recommended to replace this transit charge by a user charge or tolling system for both foreign and domestic vehicles. Indeed, the MoT envisages phasing out this “Road Tax”, once an adequate system of user charges or tolls is in place.
A special vignette is required for the use of motorways and express roads. All users, foreign and domestic pay the same yearly charge. It is anticipated to make the vignette time dependent (day, week, month, year).
According to recent policy statements, the Ministry of Transport of the Slovak Republic envisages the implementation of a tolling system by 2006/2007. By that time it is expected that traffic volumes justify the construction of tolling facilities and operational cost to the extent that from the net revenues normal maintenance and improvement of existing motorways and express roads can be financed.
Fuel excises are regulated in Act No. 316/1993 of the Code on consumption tax from fuels. The levels of the excise duties are not in line with the EU-minimum levels. It is recommended to have a gradual increase of the level for leaded and unleaded petrol and for diesel although it is clearly understood that for acceptability issues the increase should be fairly low at each step and carefully planned.
CB/TB4369r26
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1Background
The Slovak Republic is an independent state since 1993 and its area is 49010 km2. The Slovak population is nearly 5.4 millions inhabitants and did not change significantly (+0,75%) over the last five years, as indicated in table 1.1 below.
Table 1.1 Size of population over the last five years (mio)1994 / 1995 / 1996 / 1997 / 1998
Population / 5 347 413 / 5 363 676 / 5 373 810 / 5 383 214 / 5 387 650
Source:Statistical Yearbook of the Slovak Republic 1998
Since the establishment of the Slovak Republic on January 1st 1993, Slovakia has continued the difficult transformation from a centrally controlled economy to a modern market-oriented economy. Macroeconomic performance improved steadily, but privatisation progressed only modestly. Unemployment fell to about 12 percent in 1996 and inflation dropped from 26 percent in 1993 to 5.5 percent in 1996, the lowest in the region. Foreign debt is the second lowest in the region per capita. Private activity now makes up roughly two-thirds of GDP. Positive international financial performance has led Standards and Poor’s to raise its rating of the National Bank of Slovakia to just one step below investment grade. Economic performance continues to be impressive; possible hazards are inflation and the mounting of the trade and current account deficit, as imports soar and exports sag.
The table 1.2 below presents the main country budget figures (as of 19-4-1999 the exchange rates were 45 SK to 1 ECU and 42 SK to 1 US$)
Table 1.2 Government Budget (x1000 SK, current prices, 1998)Total income / 168 600 000
Total expenditure / 184 800 000
Total expenditure on transport / 13 148 981
Transport expenditure on roads / 5 110 600
Road expenditure on motorways / 4 297 000
Road expenditure on state roads / 813 600
Road expenditure on municipal roads / -
1.1Road Transport Policy
At its conception in 1993, the Slovak Republic has formulated a clear transport policy by which the government aims to concentrate on core responsibilities and tasks:
Formulation of the institutional and legal and regulatory framework.
Longer term infrastructure planning.
Consideration of traffic safety and environmental impact.
Organisation and management of infrastructure financing.
Methodological development and international contacts.
The transport activity itself and the infrastructure construction and operation industry should be organised as much as possible through the private sector.
The Slovak Transport Policy focuses on the new construction of motorways for international corridors and the upgrading of national routes between larger towns and cities. Large sums of money have been devoted to the motorway programme, and the development of the rail network focuses on increasing line speeds of main lines and starting combined transport. Air transport is projected to increase significantly. The high density network of local railway lines is being gradually eroded whilst the road infrastructure is being developed.
By its resolution no 166/1993, the Government approved the Transport Development Plan as a source document to achieve its goals for the transport sector, including infrastructure. The following “principles” are considered relevant for the present project:
Separation of the administrative functions of road administration from the execution/operations of road works.
The mechanism of establishing and allocating external cost to the (road) users.
Support to the development of motorways in the approved international corridors.
Creation of conditions for the establishment of independent funds for the development and financing of transport infrastructure.
Revenues from (road) transport charges must be used for rehabilitation and development of the transport infrastructure (vide “Act of State Fund of Road Economy”).
Establishment of a system of transport statistics in conformity with State Statistics Slovak Republic, European Union and United Nations.
Initiate, negotiate, formalise adaptations of Slovak transport policies, rules and regulations towards EU standards and integration of the SR networks into the EU transport systems.
The Slovak government is in the process of revising its transport policy pending a careful examination of the introduction of toll on Slovak motorways instead of the present “Vignette”. However the introduction of toll is not considered before 2006 or 2007.
1.2Road Transport Legislation
In Resolution No. 166/1993 the Slovakian government approved the Conception of Transport Development. Several principles are formulated in this document. One of the principles is that mechanisms have to be developed fixing and projecting the external costs to the user. A second relevant principle is the creation of conditions for foundation of objective funds for financing and development of transport infrastructure.
However, Slovakian transport policy is currently under revision. The present Government has declared that the current transport development strategy, approved by the previous Government, is not suitable and started to develop a new strategy document. It is under preparation and should be discussed within the Government in the middle of 1999. Therefore no official transport policy is in force for the time being.
Key legislation in the field of road transport is the Road Act (1996). The Road Act regulates the construction, use and protection of the roads, rights and duties of owners and administrators of the roads and their users, as well as the activities of state administration organs referring to the roads.
The motorways and roads are owned by the State and administrated by the Slovak Road Administration. The local roads are the property of villages, which administrate the roads by themselves or by corporate bodies established by them for this purpose.
2Database
2.1Road network
Table 2.1Length of different road types in kilometres (1998)Type of roads / km
Motorways (state responsibility) / 292.22
1st class roads(state responsibility) / 3,222.55
2nd class roads(state responsibility) / 3,722.64
3rd class roads(state responsibility) / 10,462.60
Local communications (municipalities responsibility) / 19,524.00
Other roads (owners responsibility) / not available
Total / 37,224.21
Table 2.2 Percentage of different types of roads that is in good, fair, poor condition (1998)
Type of Roads / Good / Fair / Poor
Motorways / 83 / 11 / 6 / 100%
1st class roads / 52 / 34 / 14 / 100%
2nd class roads / 32 / 42 / 26 / 100%
3rd class roads * / 50 / 30 / 20 / 100%
Total / 47 / 33 / 20 / 100%
* 3rd class roads values have been estimated
2.2Traffic
Table 2.3Average Annual Daily Traffic (AADT) by types of roadsType of Roads / 1995 / 1996 / 1997 / 1998
Motorways / 8 599 / 9 721 / 10 844 / 11 966
1st class roads / 4 746 / 5 062 / 5 357 / 5 693
2nd class roads / 1 877 / 1 928 / 1 978 / 2 029
3rd class roads / 1 094 / 1 098 / 1 101 / 1 105
Table 2.4Average Annual Daily Traffic (AADT) counts for key types of roads per vehicle category (1998)
Type of Roads / Pass.
cars / Vans & Util. / Buses / R. light trucks / R.med.trucks / R. heavy trucks / Art.
trucks / Others
Motorways / 9 671 / 2 286 * / 8
National roads / 6 859 / 1 893 * / 77
Regional roads
Motorways / 9 671 / 2 286 * / 8
1st class roads / 4 440 / 1 223 * / 31
2nd class roads / 1 595 / 410 * / 24
3rd class roads / 824 / 260 * / 22
*All this vehicle categories are together and are classified as trucks
Articulated trucks are “truck-trailer” combinations or “road tractor-semi-trailer” combinations
Source:Slovak Road Administration – Road Databank(as of 31.12.1998)
2.3Fleet
Table 2.5Total numbers of vehicles over the last 5 years1994 / 1995 / 1996 / 1997 / 1998
Passenger cars / 994 046 / 1 015 794 / 1 058 425 / 1 135 914 / 1 196 109
Vans, Utilities / 16 765 / 16 930 / 15 262 / 14 061 / 12 130
Busses / 12 066 / 11 812 / 11 321 / 11 235 / 11 293
Rigid light trucks
Rigid medium trucks / 131 189 / 131 501 / 127 246 / 134 395 / 142 641
Rigid heavy trucks
Articulated trucks
Other / 464 625 / 469 395 / 318 535 / 327 700 / 357 301
Source:Slovak Road Administration
In 1998, Slovak Republic had a rate of 222 vehicles per inhabitants (for comparison purposes, Sweden has 447 and Germany 523 in 1995). Since 1995, car ownership has grown 17.22%
2.4Fuel consumption
The fuel consumption over the last years is indicated in tables 2.6 and 2.7 below:
Table 2.6Country fuel totals over the last 5 years (x 1000 tonnes)1995 / 1996 / 1997 / 1998
Petrol
▲Production / 44,073 / 45,149
▲Imports / 0,441 / 0,451
▲Exports / 4,251 / 4,354
Petrol (unleaded)
▲Production / 1 336,930 / 1 554,200
▲Imports / 13,370 / 15,540
▲Exports / 128,936 / 149,890
Diesel
▲Production / 1 791,000 / 2 485,490
▲Imports / 17,910 / 24,850
▲Exports / 172,728 / 239,705
Table 2.7Domestic consumption (tonnes, 1998)
Petrol (leaded) / Petrol (unleaded) / Diesel
Transport / 20 140 / 693 288 / 854 902
Other (agriculture, industry) / 21 107 / 726 564 / 1 415 735
3Actual and planned RTC systems
At present the following taxes and charges are applied in Slovakia:
Fuel excise tax (or, as called in the country, “Fuel Tax”);
Vehicle tax (or, as called in the country, “Road tax”);
Vignette for motorway usage;
Other miscellaneous taxes and charges.
3.1Fuel Taxation
Fuel costs are broken down into their component in table 3.1 below:
Table 3.1Costs components of the total fuel price per litre (for car use) over the last 5 years (SK, current prices)1994 / 1995 / 1996 / 1997 / 1998
Petrol (leaded)
Refinery price or import cost per lit.(Incl. import duties)
Distribution (transport) cost and profit margins per lit. / 9.015 / 8.705 / 9.941 / 11.152 / 10.965
Excise tax per lit. / 7.108 / 7.108 / 7.108 / 7.108 / 7.108
VAT per lit. / 3.707 / 3.637 / 3.921 / 4.200 / 4.157
Other taxes per lit. / 0.000 / 0.000 / 0.000 / 0.000 / 0.000
Total price at the (pump) per lit. / 19.83 / 19.45 / 20.97 / 22.46 / 22.23
Petrol (unleaded)
Refinery price or import cost per lit.(Incl. import duties)
Distribution (transport) cost and profit margins per lit. / 8.875 / 8.461 / 9.745 / 11.038 / 10.802
Excise tax per lit. / 7.149 / 7.149 / 7.149 / 7.149 / 7.149
VAT per lit. / 3.686 / 3.590 / 3.886 / 4.183 / 4.129
Other taxes per lit. / 0.000 / 0.000 / 0.000 / 0.000 / 0.000
Total price at the (pump) per lit. / 19.71 / 19.20 / 20.78 / 22.37 / 22.08
Diesel
Refinery price or import cost per lit.(Incl. import duties)
Distribution (transport) cost and profit margins per lit. / 6.419 / 6.988 / 8.232 / 10.289 / 9.875
Excise tax per lit. / 6.914 / 6.914 / 6.914 / 6.914 / 6.914
VAT per lit. / 3.067 / 3.198 / 3.484 / 3.957 / 3.861
Other taxes per lit. / 0.000 / 0.000 / 0.000 / 0.000 / 0.000
Total price at the (pump) per lit. / 16.40 / 17.10 / 18.63 / 21.16 / 20.65
As can be pictured out from this table the fuel tax has been unchanged for 5 years, staying at:
10000 SK/ton of leaded petrol;
9390 SK/ton of unleaded petrol;
8250 SK/ton of diesel fuel.
This tax is collected by the Ministry of Finance and every year a share of it depending on the budget law is put into the Road Fund, making it an unreliable source of revenues for the Road Fund, as it is never known how much of the total money collected (currently around 23 bio SK/year) will go to the Road Fund.
3.2Vehicle Taxation
Vehicle taxation is called “Road tax” in Slovakia. It is paid only by the commercial vehicles (buses and trucks) and by the personal cars owned by a company. This taxation does not apply to personal cars own by private individuals.
Its amount is fairly high as shown in the table 3.2 below.
Table 3.2Road tax rates
a) Company-owned passenger cars: / - with 3 axles:1 200,- SK / up to 900 cm3 / 11 000,- SK / up to 15 t
1 600,- SK / between 900 and 1 200 cm3 / 13 000,- SK / between 15 and 17 t
2 200,- SK / between 1 200 and 1 500 cm3 / 16 000,- SK / between 17 and 19 t
2 800,- SK / between 1 500 and 2 000 cm3 / 19 000,- SK / between 19 and 21 t
3 500,- SK / between 2 000 and 3 000 cm3 / 22 000,- SK / between 21 and 23 t
4 200,- SK / above 3 000 cm3 / 25 000,- SK / between 23 and 25 t
b) vans, lorries and buses with 1 or 2 axles: / 28 000,- SK / between 25 and 27 t
1 200,- SK / up to 1 t / 31 000,- SK / between 27 and 29 t
2 400,- SK / between 1 and 2 t / 34 000,- SK / between 29 and 31 t
4 000,- SK / between 2 and 4 t / 38 000,- SK / between 31 and 33 t
6 000,- SK / between 4 and 6 t / 42 000,- SK / between 33 and 35 t
8 000,- SK / between 6 and 8 t / 46 000,- SK / between 35 and 37 t
10 000,- SK / between 8 and 10 t / 50 000,- SK / between 37 and 40 t
12 000,- SK / between 10 and 12 t / 54 000,- SK / over 40 t
15 000,- SK / between 12 and 14 t / - with 4 and more axles:
18 000,- SK / between 14 and 16 t / 14 000,- SK / up to 23 t
21 000,- SK / between 16 and 18 t / 17 000,- SK / between 23 and 25 t
24 000,- SK / between 18 and 20 t / 20 000,- SK / between 25 and 27 t
28 000,- SK / between 20 and 22 t / 23 000,- SK / between 27 and 29 t
32 000,- SK / between 22 and 24 t / 26 000,- SK / between 29 and 31 t
36 000,- SK / between 24 and 26 t / 30 000,- SK / between 31 and 33 t
40 000,- SK / between 26 and 28 t / 34 000,- SK / between 33 and 35 t
44 000,- SK / between 28 and 30 t / 38 000,- SK / between 35 and 37 t
48 000,- SK / over 30 t / 42 000,- SK / between 37 and 40 t
46 000,- SK / over 40 t
1€ = ± 44 SK
It should be noted that this tax that, in fact, is rather a charge for using the state road network is also paid by foreign commercial vehicles depending how much time they spent in Slovakia, following the pattern indicated hereafter:
One day = yearly amount[1] / 50, with a minimum of 500 SK
Seven days = yearly amount2 / 20, with a minimum of 1000 SK
Thirty days = yearly amount2 / 5, with a minimum of 3000 SK
No yearly or permanent payment is available and each entry into Slovakia is treated as a separate case. Only Czech vehicles are exempted of such a charge, provided they can prove they have paid their annual road tax in Czech Republic (and vice-versa under the terms of a bilateral agreement).
The money collected with this “Road tax” is split in two parts:
70% of the total amount collected goes to the road Fund
30% of the total amount is shared amongst the municipalities according to their relative populations.
3.3Other taxation
Other taxation and/or charges includes:
A vignette system for use of the motorway network,
License plate fee,
Transit fees for foreign vehicle governed by bilateral agreements,
Some administrative fees related to issuance of transport permits (for both passengers and goods)
3.4Future perspective
Future perspectives are:
A new law regarding the fuel tax which aims at securing 80% of the total amount collected for the Road Fund instead of an erratic amount each year subject to Budget Law discussion.
A new “vignette” schedule introducing both a two-week vignette and a yearly vignette with slightly revised fares:
4Revenues
The revenues for the all road related activities go through the Road Fund.
The funds collected from the different revenues sources (taxes and charges) are presented in the following table 4.1:
1994 / 1995 / 1996 / 1997Fuel tax / 1 000 / 1 000 / 1 174 / 2 600
Vehicle registration tax / - / - / - / -
Licence plate fee
Purchase tax
Import tax
Vignettes / - / - / 195 / 287
Road tolls / - / - / - / -
Transit fee
Road tax / 907 / 949 / 1 104 / 1 170
Total / 1 907 / 1 949 / 2 473 / 4 057
Aside from these sources, most of the available funds are coming from loans and grants, the detail of which is presented in the following table.
Table 4.2Loans & grantsLending agency, Borrower / Denominated in what currency? / Amount (local currency, current prices) / Conditions (interest rate, grace period, repayment period)
Lending agency: EIB – European Roads Project I
Borrower:
Ministry of Finance / 10 MECU / 382 828 237 SK / Average interest rate 7,9%
Grace period 3 years
Repayment period:
25 October 1997 – 25 April 2007
Lending agency: EIB – European Roads Project II
Borrower:
Ministry of Finance / 25 MECU / 938 570 000 SK / Average interest rate 5,9%
Grace period 6 years
Repayment period:
15 March 2003 – 15 September 2012
Lending agency: EBRD – International Road Corridor Project I
Borrower:
Ministry of Finance / 15 MECU / 575 048 096 SK / Average interest rate 7,3%
Grace period 3 years
Repayment period:
15 September 1996 – 15 March 2008
Lending agency: KfW
Borrower:
Ministry of Finance / 80 mil. DEM / 1 741 280 000 SK / Average interest rate:
LIBOR + 2,5%
Grace period 3 years
Repayment period: 2001 - 2008
Lending agency: IBJ
Borrower:
Ministry of Finance / 120 mil. USD / 4 091 040 000 SK / Average interest rate:
0-3 years of signing the agreement LIBOR + 0,425% p.a.
3-5 years - LIBOR + 0,5%
5-1st July 2004 – LIBOR + 0,60%
Grace period 54 months
Repayment period:
2001 – 30 September 2004
Lending agency: EC-PHARE
Borrower:
Ministry of Transport, Posts and Telecommunications (MTPT) / 1 MECU / 39 215 232 SK / Grant
Lending agency: EC-PHARE
Borrower:
Ministry of Transport, Posts and Telecommunications (MTPT) / 0,9 MECU / Approximately
39 600 000 SK / Grant
5Allocation mechanism
There is a Road Fund in Slovakia, which is used to cover all road sector expenditures. The Road Fund is managed by a board of eleven persons coming from the Ministry of Transport (4), the Road Administration (2), the Ministry of Finance (1), the Ministry of Interior (1), the Ministry of Environment (1), the Road Fund itself (1) and the Banks (1).