The energy ministry has responded favorably to a call by renewable energy producers, primarily wind energy farmers, for a reduction of withholding taxes concerning licenses issued in 2017, 2018 and 2019.

This tax cost will be reduced to one third of its regular amount – 1,000 euros per megawatt, annually – for licenses issued during the three-year period and will be payable over two installments, energypress sources have informed.

An amendment facilitating the tax revision will be attached to a draft bill covering various environmental matters, expected to be submitted to parliament either today or tomorrow, the sources added.

The revision promises an even greater tax reduction for RES licenses compared to a previous plan that had envisioned a 50 percent cut.

The government plans to abolish this withholding tax for RES licenses issued as of 2020 as part of a series of key changes aiming for investor-friendly simplification of the RES licensing procedure.