Environmental taxation

Environment-related taxes and charges amounted to EUR 4.1 billion in 2001, accounting for 6.6 per cent of tax revenues. When municipal water, wastewater and waste management charges are included, this proportion rises to 7.9 per cent. The definition of environmental taxes is based on that the tax must be directed to some measurable physical quantity that is considered to have a harmful effect on the environment.

Energy taxes form the majority of environmental taxes. These include basic and additional taxes of motor fuels (petrol and diesel oil) and other energy products (light and heavy fuel oil, coal, peat, natural gas and electricity). In 2001, energy taxes totalled EUR 2.7 billion.

Vehicle-based taxes (automobile tax, vehicle tax and motor vehicle tax) form another, quite significant part of environmental taxes. In all, these taxes amounted to EUR 1.4 billion. Other environment-based taxes and charges are agricultural charges, surtax on alcoholic and soft drink taxes, oil waste tax, oil pollution control fee, water protection tax and waste tax. In addition, municipal water, wastewater and waste management charges equalled EUR 0.8 billion.

Environmental taxation in 1980-2001.

Updated 9.8.2002