Energy Taxation in Europe, Japan and The United States
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Energy Taxation inEurope, Japan andThe United States
Summary of the energy taxation survey of electricity,fuels, district heat and transport in the EU and EFTAcountries, Japan and the United States released byFinnish Energy Industries in November 2010.
ENERGY TAXATION IN EUROPE,JAPAN AND THE UNITED STATES
TO THE READER
Almost all industrialised countries impose taxes onenergy. Transport fuels have carried a relativelyhigh fiscal tax for a long time. In Finland, the slumpof the early 1990s led to quickly increasing energytaxation, the primary goal of which was to makeup for the deficit in government finances. At thesame time, the other Nordic countries also raisedtheir energy taxes, but in most of the countriesenergy taxes were still at a low level at the time orenergy was not taxed at all, with the exception oftransport fuels.
The European Union made an attempt to standardiseenergy taxation practices as early as the beginningof the 1990s. However, it was only after manystages and the ratification of the financially muchmore heavyweight Emissions Trading Directive thatthe Energy Taxation Directive was approved in 2003.It lays down the structure of energy taxation andrelatively low minimum tax rates for fuels andpower.
The European Commission is currently updatingthe Energy Taxation Directive. According toinformation trickled from the Commission, the aimis to change the current taxation, based on energycontent, to become mainly based on carbonemissions. The taxation would steer particularlysectors outside emissions trading, and their minimumtax rates would be substantially raised. It is evidentthat the Commission will present its draft during2011.
The practices and levels of energy taxation varyconsiderably between countries. Therefore, it isessential to consider whether or not the nationaleconomies of high-taxation countries can sustainfurther increases in energy taxes in the increasinglytight global markets. On the other hand, regressiveenergy taxes substantially cut consumer demandfrom the other sectors of consumption. Thus, theyplace a particular burden on northern nationaleconomies, where energy consumption is relativelyhigh due to the cold climate and long distances.Naturally, energy is a tempting target for the taxman,as everyone needs it.
Comparative information on energy taxes is requiredboth by decision-makers and civil servants draftingthe taxation. Knowledge of energy taxation andestimates on its development are also necessaryfor businesses when making decisions on energyinvestments. Despite the increasing importance ofenergy taxation, only scant information on it isavailable.
This publication is a summary of the comparativeenergy tax survey published by Finnish EnergyIndustries in November 2010. The survey wascarried out to provide a basis for decision-makingconcerning energy taxation in central governmentand in industry, both in Finland and further afield.The main sources of the study were the EuropeanCommission, Eurostat, Euroheat & Power, Eurelectric,material published in the countries under scrutiny,as well as questionnaires on energy taxation sentto various parties in the relevant countries.
TAXATION OF ENERGY ANDTRANSPORT IN 30 COUNTRIES
The countries included in the survey are the EUmember countries (excl. Luxembourg and Cyprus)plus Iceland, Norway, Switzerland, Japan and theUnited States. In addition to Finland, taxation ondistrict heating was studied in Sweden, Norway,Denmark, Iceland, Poland, Austria, Italy, Franceand Germany.
The survey focuses on the taxation of electricityconsumption and generation, taxation of fuels inbusinesses and households, taxation of districtheating production and consumption, and taxationof transport. With regard to transport, the surveycovers the taxation of transport fuels and motorvehicle taxation based on environmental values, aswell as tax subsidies and monetary incentivesapplied to the purchase and use of electric vehicles.
The main focus of the survey is on excise taxation,but value added taxation and other tax-like chargesare also touched upon. Tax deductions andexemptions have been taken into consideration tothe extent that it has been possible on the basis ofthe material obtained.
Various exceptions and reliefs are often particularlydifficult to ascertain. Furthermore, the energy taxlegislation is extremely complex in some countries,with numerous tax levels. For this reason, we havebeen forced, to some degree, to use average ortypical tax levels of a consumer group under scrutiny.Some countries also apply tax-like charges, suchas feed-in tariffs, which have mostly been excludedfrom the comparison. However, they have beenmentioned in the actual report, if possible, but inthis brief summary only inasmuch as they are ofsignificant importance, as is the case in Germanelectricity taxation.
In Finland, the tax on fuels and electricity morethan doubled from the start of 2011. At the sametime, taxation of fuels was modified so that itconsists of energy content and carbon dioxidecomponents. Combined heat and power generation(CHP) fuels are subject to a 50 per cent reductionoff the carbon dioxide component. For Finland, thetax levels for both 2010 and 2011 are examined.
In many countries, the taxation of electricity consumptionvaries, depending on the business sector and volume ofconsumption. There are differences in the taxation ofelectricity between industrial and service companies insix countries, namely Austria, Norway, Sweden, Germany,Finland and Denmark. The highest business power taxlevels with no relief for energy-intensive industries are inItaly, Germany and the Netherlands. The taxation of powerconsumed by service companies, on the other hand, isby far the tightest in Denmark and Sweden.
The EU minimum levels in industrial power taxation areapplied by seven countries, and in service company powertaxation by four countries. In Great Britain, Portugal,Switzerland and the United States, companies are notsubject to power consumption tax at all.
In seven countries included in the study, electricityproduced by renewable energy sources was exemptedfrom electricity tax.
Energy-intensive industry is granted relief from powertaxation in the Netherlands, Belgium, Italy, Austria,Lithuania, Norway, Sweden and Denmark, as well as inFinland.
Electricity consumption taxes for households are by farthe highest in Denmark. The EU minimum tax level forelectricity is applied by five member countries. In ninecountries, seven of them EU member states, there is noelectricity tax at all for households.
As a rule, power generation fuels are not taxed in the EUcountries. This is due to the EU Energy Taxation Directive,which stipulates that the member states must exemptfrom taxation energy products and electricity used forpower generation. However, the member states may settaxes on these products for environmental reasons. Ofthe EU countries, Italy, Lithuania and the Czech Republicmake use of this option for certain fuels. Of countriesoutside the EU included, Japan and Norway impose taxeson fuels used for power generation, although in Norwayalmost all electricity is produced by hydropower and thetax on fuels has no impact on power generation.
In Sweden and Denmark all power generation fuels aresubject to sulphur and nitrogen taxes, which thereforealso apply to renewable fuels. Nuclear fuel is not taxedin any European country. In Japan, nuclear fuel is subjectto tax at 13%.
In addition to Finland, only in Sweden, Norway and Spainare power plants taxed differently from general propertytax rates. The property tax separately levied on powerplants is the highest in Finland, if the municipal authoritydecides to apply the maximum permitted property tax(2.85%).
Other taxes and tax-like charges levied on power companiesin the countries under study may be divided into taxationof emissions (e.g. carbon dioxide, sulphur, nitrogen andair pollutants), regional taxes and charges levied by localauthorities, taxation of certain methods of powergeneration, and other taxes and charges.
Sulphur and nitrogen taxes or tax-like charges are appliedat least in Sweden, Denmark, Norway, Spain, Italy, Latvia,Hungary and Estonia. Carbon dioxide taxes on powergeneration fuels are only applied in some autonomousregions in Spain. In several countries, power companiespay local authorities at municipal and provincial levelvarious charges, e.g. for operating permits, use ofwaterways and land areas, and transformers.
Nuclear power in particular is subject to taxes and chargesdiffering from those imposed on other power production.They include taxes levied on nuclear waste and dismantlingof power plants, as well as e.g. taxes based on the thermaloutput of the nuclear reactor and the area of the buildingsconstructed within the restricted power plant area. InFinland, the financial resources for nuclear wastemanagement are collected by the government into theNational Nuclear Waste Fund.
TAXATION OF ELECTRICITY
Ital
y
Ger
man
y
Net
her
lands
Fran
ce
Fin
lan
d 2
01
1
Bel
giu
m
Pola
nd
Est
onia
Japan
Slo
venia
Fin
lan
d 2
01
0
Gre
ece
Den
mar
k
Slo
vaki
a
Cze
ch R
epublic
Bulg
aria
Latv
ia
Mal
ta
Hungar
y
Norw
ay
Sw
eden
Lith
uan
ia
Spai
n
EU
min
imum
Irel
and
Aust
ria
Rom
ania UK
Port
ugal
Sw
itze
rlan
d
US
1,6
1,4
1,2
1
0,8
0,6
0,4
0,2
0
ELECTRICITY TAXES FOR INDUSTRY, C/KWH
The diagram compares industrial companies typically consuming less than 10,000 MWh/year. In Germany, 2.21 c/kWh in additional various tax-like charges and network costs are levied. Several countries have various types of energy tax rebate procedures for industry: these are not
included in the diagram.
1,3
5
1,2
3
1,0
8
0,7
6
0,7
03
0,5
02
0,5
01
0,4
47
0,3
5
0,3
05
0,2
63
0,2
5
0,1
34
0,1
32
0,1
14
0,1
0,1
0,0
562
0,0
53
0,0
5
0,1
0,1
0,0
5
0,0
5
0,0
5
0,0
5
0,0
521
0 0 0 0
Den
mar
k
Sw
eden
Ger
man
y
Fin
lan
d 2
01
1
Norw
ay
Ital
y
Net
her
lands
Fin
lan
d 2
01
0
Fran
ce
Bel
giu
m
Pola
nd
Est
onia
Japan
Slo
venia
Gre
ece
Slo
vaki
a
Cze
ch R
epublic
Bulg
aria
Latv
ia
Mal
ta
Hungar
y
Lith
uan
ia
Spai
n
EU
min
imum
Irel
and
Rom
ania
Aust
ria
UK
Port
ugal
Sw
itze
rlan
d
US
12
10
8
6
4
2
0
ELECTRICITY TAXES FOR SERVICE COMPANIES, C/KWH
Den
mar
k
Sw
eden
Ital
y
Ger
man
y
Fin
lan
d 2
01
1
Net
her
lands
Aust
ria
Norw
ay
Fran
ce
Fin
lan
d 2
01
0
Pola
nd
Gre
ece
Est
onia
Japan
Slo
venia
Bel
giu
m
Cze
ch R
epublic
Bulg
aria
Spai
n
Rom
ania
Mal
ta
EU
min
imum US
UK
Sw
itze
rlan
d
Slo
vaki
a
Port
ugal
Lith
uan
ia
Latv
ia
Irel
and
Hungar
y
12
10
8
6
4
2
0
ELECTRICITY CONSUMPTION TAXES FOR HOUSEHOLDS, C/KWH
In Germany, 3.97 c/kWh in various additional tax-like charges and network costs are levied.
For the Netherlands, the typical tax rate quoted by Eurostat of 1.6 c/kWh is applied, which is equivalent to annual electricity consumption of3,430 kWh. In Germany, 3.97 c/kWh in various additional tax-like charges and network costs are levied.
Norw
ay
Sw
eden
Fin
lan
d 2
01
1
Fin
lan
d 2
00
9
Den
mar
k
Irel
and
Aust
ria
Ger
man
y
Cyp
rus
Luxe
mbourg
Net
her
lands
Spai
n
UK
Fran
ce
Mal
ta
Slo
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Port
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Cze
ch R
epublic
Slo
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a
Hungar
y
Gre
ece
Cro
atia
Est
onia
Pola
nd
Bulg
aria
Latv
ia
Lith
uan
ia
Turk
ey
Rom
ania
1 400
1 200
1 000
800
600
400
200
0
DOMESTIC ELECTRICITY COSTS PER YEAR, EUROS/PERSON
Domestic electricity usage varies considerably in different countries due to seasonal differences in particular, as well as the composition of energyuse. The combined burden of electricity price and taxes should therefore be compared also as an annual total cost to households, when assessing
e.g. the effect of taxation on purchasing power or inflatory development.
VAT
Energy Tax
Electricity
9,6
8
2,9
7
2,0
5
1,7
1,3
5
1,3
5
1,0
8
0,8
8
0,7
6
0,5
02
0,5
01
0,4
47
0,3
5
0,3
05
0,2
5
0,1
32
0,1
14
0,0
5
0,1
0,1
0,0
5
0,0
5
0,0
5
0,0
5
0 0 0 00,1
0,1
0,0
15
9,6
8
2,9
7
2,3
4
2,0
5
1,7
0
1,6
0
1,5
0
1,3
5
1,2
1
0,8
83
0,5
01
0,5
00
0,4
47
0,3
50
0,3
05
0,1
9
0,1
14
0,1 0,1
0,1
0,1
0,1
0 0 0 00 0 0 00
1242
713
615
566
456
415
393
391
389
375
337
292
282
272
254
241
216
188
183
89
205
204
89
80
771
24176
74
55
In the study, the fuel tax levels of Norway, Sweden andDenmark vary between companies, depending on whetheror not they belong to the EU emissions trading scheme.With regard to excise duties on heavy fuel oil, natural gasand coal, the study includes excise duties in the EU andNorway that are levied on companies within EU emissionstrading. The excise duties on light fuel oil are included inrelation to households and companies outside emissionstrading.
From the beginning of 2011, Finland imposes the highesttax on heavy fuel oil in business use. The taxes are thenext highest in Great Britain and Norway. Of the otherNordic countries, Sweden levies a significantly lower taxon heavy fuel oil than Finland in 2011, and Denmark nonewhatsoever. In Denmark, natural gas, oil and coal productsused in light and heavy industrial processes are completelyexempted from energy tax and, within EU emissionstrading, also from carbon dioxide tax. Ten EU memberstates impose taxes on heavy fuel oil according to the EUminimum rate.
Light fuel oil is subject to the heaviest tax in business usein Greece, Italy and Malta.
Natural gas is most highly taxed in business use by Malta,Switzerland and Austria in 2010. Ten countries impose noexcise duties at all on natural gas used by businesses.
Finland levies the highest tax on coal in 2011. In 2010,the highest taxes on coal were imposed by Switzerland,Norway and Finland.
Light fuel oil in domestic use is most highly taxed inGreece, Italy and Sweden. In the United States and GreatBritain, value added tax is the only tax levied on light fueloil in domestic use. The combined tax burden of exciseduty and value added tax is the heaviest in Sweden,Greece and Denmark.
The highest excise duties on domestic use of natural gasare in Denmark, Sweden and the Netherlands. The samecountries impose the highest taxes on natural gas alsowhen value added tax is included.
In addition to the Nordic countries, of the countriesincluded in the study also Spain, Ireland, Latvia, Slovenia,Switzerland and Estonia levy a carbon dioxide-based taxon heating and transport fuels.
It transpires that the carbon dioxide taxation in Swedenis clearly the highest of the countries included, EUR110/carbon dioxide tonne. The carbon dioxide tax ratesof the other countries vary between EUR 2–50/tCO2, theEstonian tax being the lowest and that levied by Finlandin 2011 the second highest after Sweden. Sweden’s highcarbon dioxide tax is explained by the structure of Swedishenergy taxation, where the carbon dioxide tax is anelement considerably greater than fiscal energy tax.However, the carbon dioxide tax relief to industry grantedby Sweden brings the tax levels for Swedish industry onaverage to that of the other countries, and from the startof 2011, also below the tax levels in Finland. Exemptionsor relief on carbon dioxide taxes are granted to companieswithin EU emissions trading in Sweden, Norway, Denmarkand Latvia.
TAXATION OF FUELS
TAXES ON HEAVY FUEL OIL FOR BUSINESSES, EUROS/TONNE
Fin
lan
d 2
01
1
UK
Norw
ay
Fin
lan
d 2
01
0
Irel
and
Aust
ria
Slo
venia
Sw
eden
Net
her
lands
Ital
y
Slo
vaki
a
Bulg
aria
Ger
man
y
Gre
ece
Cze
ch R
epublic
Japan
Fran
ce
Pola
nd
Hungar
y
Latv
ia
Port
ugal
Lith
uan
ia
Rom
ania
Mal
ta
Est
onia
Bel
giu
m
Spai
n
EU
min
imum
Den
mar
k
Sw
itze
rlan
d
US
200
180
160
140
120
100
80
60
40
20
0
Companies within EU emissions trading.
188
132
123
67
62,7
60
55
49,2
33,7
31,4
26,6
25,6
25
19
19
18,7
18,5
16
15,6
15,5
15,3
15,1
15,1
15 15 15
15 15
0 0 0
TAXES ON LIGHT FUEL OIL FOR HOUSEHOLDS, EUROS/1,000 L
Sw
eden
Gre
ece
Den
mar
k
Ital
y
Hungar
y
Rom
ania
Net
her
lands
Norw
ay
Fin
lan
d 2
01
1
Port
ugal
Slo
venia
Est
onia
Fin
lan
d 2
01
0
Aust
ria
Mal
ta
Spai
n
Latv
ia
Irel
and
Pola
nd
Fran
ce
Ger
man
y
Slo
vaki
a
Bulg
aria
Cze
ch R
epublic
Lith
uan
ia
Bel
giu
m
EU
min
imum
Sw
itze
rlan
d
US
UK
Japan
700
600
500
400
300
200
100
0
TAXES ON COAL FOR BUSINESSES, EUROS/TONNE
Fin
lan
d 2
01
1
Sw
itze
rlan
d
Norw
ay
Fin
lan
d 2
01
0
Aust
ria
Sw
eden
Slo
venia
Net
her
lands
Slo
vaki
a
Bel
giu
m
Fran
ce
Latv
ia
Hungar
y
Cze
ch R
epublic
Ger
man
y
Bulg
aria
Est
onia
Mal
ta
Gre
ece
Japan
Ital
y
Irel
and
Port
ugal
Lith
uan
ia
EU
min
imum
Rom
ania
Spai
n
Den
mar
k
US
Pola
nd
UK
160
140
120
100
80
60
40
20
0
Companies within EU emissions trading.
128,1
73,0
62,5
50,0
50,5
41,7
32,5
13,2
10,6
9,8
4
8,5
7
8,4
7
8,4
3
8,4
1
8,1
2
7,5
5
7,3
8
7,3
8
7,3
8
6,5
3
4,6
0
4,1
8
4,1
6
3,7
7
3,6
9
0,5
4
0,5
4
TAXES ON NATURAL GAS FOR BUSINESSES, EUROS/MWH
Companies within EU emissions trading.
Fin
lan
d 2
01
5
Fin
lan
d 2
01
3
Mal
ta
Fin
lan
d 2
01
1
Sw
itze
rlan
d
Aust
ria
Ger
man
y
Slo
venia
Spai
n
Net
her
lands
Sw
eden
Irel
and
Est
onia
Fin
lan
d 2
01
0
Ital
y
Slo
vaki
a
Cze
ch R
epublic
Fran
ce
Hungar
y
Japan
Rom
ania
EU
min
imum
Bel
giu
m
Norw
ay
Den
mar
k
US
UK
Port
ugal
Pola
nd
Lith
uan
ia
Latv
ia
Gre
ece
Bulg
aria
16
14
12
10
8
6
4
2
0
13,7
11,5
9,3
6
6,7
2
9,0
2
6,6
0
5,5
0
4,4
2
4,1
4
4,0
0
3,5
9
2,7
7
2,5
2
2,1
0
1,8
7
1,3
2
1,2
3
1,1
9
1,1
2
0,7
86
0,6
14
0,5
40
0,3
27
VAT
Excise Duties
626
620
617
568595
471
381
365
322
272
239
233
232
219
207
190
187
185
183
171
170
155
134
132
127
126
102
89
27
24
20
0 0 0 0 0 0 0 0 0 0
0 0 0 0
District heating fuels are subject to energy taxes incommon with other fuels (see Taxation of fuels).
In the district heat generation of the countries surveyed,heavy fuel oil and coal are the most highly taxed. Taxationof natural gas in district heat production would rise inFinland in 2013 to the highest level of all the countriesnow surveyed, if the tax levels of the other countriesremain unchanged.
Taxation of fuels used for heat production in power anddistrict heat cogeneration is by far the highest in Denmark.The taxes levied on coal for heat production in cogenerationin 2011 in Finland are the second highest, and those onnatural gas and heavy fuel oil the third highest.
Tax incentives on the production of district heating throughcogeneration exist in Finland, Sweden, Germany andDenmark. In the countries studied, no other taxes werelevied on district heat production.
Iceland is the only country where district heatingconsumption was subject to a special consumption tax.This is a two per cent resource tax levied on the retailprice. In Iceland, Norway, Italy and France, a reducedrate of value added tax is applied to district heating.
In two countries, electricity produced in heat and powercogeneration is exempted from electricity tax.
TAXATION OF DISTRICTHEATING
100
90
80
70
60
50
40
30
20
10
0
SHARES OF DISTRICT HEATING ON HEATING MARKETS IN 2007, %
Iceland Sweden Denmark Finland Poland Austria Germany France Norway Italy
94
55
50 4947
18
13
5 4,82,5
Euroheat & Power, ecoheat4.eu.
35
30
25
20
15
10
5
0
EXCISE DUTIES ON NATURAL GAS AS DISTRICT HEATING FUELIN COGENERATION, EUROS/MWH
IcelandSwedenDenmark Finland2011
Austria Germany PolandNorwayItalyFinland2010
300
250
200
150
100
50
0
EXCISE DUTIES ON COAL AS DISTRICT HEATING FUELIN COGENERATION, EUROS/TONNE
IcelandSwedenDenmark Finland2011
Austria Germany PolandNorway ItalyFinland2010
240
91,9
62,550,5 50
41,7
8,12 2,60 0
29,7
6,6 6,1 5,50
3,592,1
1,250,568 0 0
Of the countries included in the study, diesel is the mosthighly taxed in Great Britain, Norway and Switzerland, ifthe excise duty and value added tax are added together.The lowest taxes by a long way are levied in the UnitedStates.
The highest taxes on petrol, with excise duty and valueadded tax combined are in Norway, the Netherlands,Greece and Great Britain. In Finland, the total taxationon petrol is the fifth highest after the above countries.
The study also looks at environment-based motor vehicletaxation. In eleven countries, the registration charge ofa new vehicle is based on carbon emissions. The registrationcharge may also be based on engine size, or on price andfuel consumption, as is the case in Austria. Vehicles withthe lowest emissions are completely exempt from theregistration charge in the Netherlands and Spain. Bulgaria,Great Britain, Luxembourg, Sweden, Germany, Slovakia,the Czech Republic and Estonia do not levy a registrationcharge at all.
In eight countries, the annual vehicle tax is based oncarbon emissions. In some countries, such as Denmark,the vehicle tax is based on fuel consumption. Vehicleswith the lowest emissions are completely exempt fromthe annual vehicle tax in Great Britain, Sweden andGermany.
In Spain, Luxembourg, Portugal and France, peoplepurchasing a new low-emission car receive an incentivepayment if they scrap an old or high-mileage car at thesame time. The payment varies between EUR 500 andEUR 2,500. An old car is defined as one more than 10years old in all the above countries.
The purchase and use of electric vehicles is subsidised inmany countries through taxation. In seven countries,electric cars are entitled to relief or full exemption fromregistration charges. Similarly, exemption from the annualvehicle tax is granted in seven of the countries includedin the survey.
In Spain, Great Britain, Cyprus and France, direct monetarysubsidies are available for the purchase of electric vehiclesor new low-emission cars. The sum varies betweenEUR 700 and EUR 6,000.
Other benefits granted to purchasers of electric vehiclesinclude the right to deduct 30% of the vehicle purchaseprice in income taxation in Belgium, the right to drive onbus lanes, free parking in public car parks, exemptionfrom road tolls and car ferry charges in Norway, and areduced tax rate on electric vehicles for businesses inSweden.
TAXATION OF TRANSPORT
TAXES ON PETROL, EUROS/LITRE
Norw
ay
Net
her
lands
Gre
ece
UK
Fin
lan
d 2
01
2
Fin
lan
d 2
01
0
Ger
man
y
Bel
giu
m
Den
mar
k
Sw
eden
Fran
ce
Port
ugal
Ital
y
Irel
and
Cze
ch R
epublic
Sw
itze
rlan
d
Slo
vaki
a
Slo
venia
Hungar
y
Lith
uan
ia
Aust
ria
Mal
ta
Pola
nd
Est
onia
Spai
n
Rom
ania
Latv
ia
Japan
Bulg
aria
EU
min
imum US
1,2
1
0,8
0,6
0,4
0,2
0
TAXES ON DIESEL, EUROS/LITRE
UK
Norw
ay
Sw
itze
rlan
d
Sw
eden
Den
mar
k
Fin
lan
d 2
01
2
Irel
and
Ger
man
y
Gre
ece
Cze
ch R
epublic
Slo
venia
Ital
y
Fran
ce
Net
her
lands
Fin
lan
d 2
01
0
Est
onia
Hungar
y
Port
ugal
Bel
giu
m
Slo
vaki
a
Aust
ria
Latv
ia
Mal
ta
Pola
nd
Rom
ania
Spai
n
Bulg
aria
EU
min
imum
Lith
uan
ia
Japan US
1,2
1
0,8
0,6
0,4
0,2
0
VAT
Excise Duties
VAT
Excise Duties
0,9
1
0,7
9
0,7
5
0,7
1
0,6
8
0,6
8
0,6
6
0,6
6
0,6
5
0,6
5
0,6
4
0,6
2
0,6
1
0,6
0
0,5
8
0,5
7
0,5
7
0,5
5
0,5
2
0,5
1
0,5
5
0,5
0
0,4
9
0,4
70,5
1
0,5
2
0,4
6
0,4
5
0,3
3
0,0
8
0,5
7
0,9
9
0,9
5
0,9
5
0,9
1
0,9
0
0,9
0
0,8
7
0,8
6
0,8
5
0,8
4
0,8
2
0,8
2
0,7
9
0,7
7
0,7
3
0,7
3
0,7
1
0,6
4
0,6
3
0,6
00,6
6
0,6
0
0,5
5
0,5
50,6
2
0,6
3
0,5
5
0,5
2
0,4
9
0,0
7
0,7
0
CHARGES, TAXES AND SUBSIDIES ON A NEW MOTOR VEHICLE
ACEA - European Automobile Manufacturers’ Association. Dash (-) denotes the absence of the charge or subsidy.
Country
Austria
Belgium
BulgariaCyprus
Czech RepublicDenmark
EstoniaFinland
France
Germany
Great Britain
Greece
HungaryIreland
ItalyLatviaLithuaniaLuxembourg
Malta
The NetherlandsPolandPortugal
Romania
SlovakiaSloveniaSpain
Sweden
General VAT
20
21
2015
2025
2023
19.6
19
17.5(20 % in 2011)
23
2521
20212115
18
192221
24
192018
25
Registration charge
Based on price and fuel consumption. Benefitor environmental tax of max. 16 %.Based on engine capacity and age; inWallonia on CO2 emissions.
–Based on engine capacity and CO2emissions.–Based on price: 105% up to EUR 10,600,180% of remainder–Based on price and CO2 emissions. Tax %= 4.88 + (0.122 x CO2). Min. 12.2%, max.48.8%.Based on CO2 emissions; EUR 200(<156–160 g/km) – EUR 2,600(>over 245 g/km).
–
–
Based on engine capacity and emissions.5–50 %. Electric and hybrid vehicles exemptfrom registration charge.Based on emissions.Based on CO2 emissions: 14%(max. 120 g/km) – 36% (>225 g/km).
± EUR 300.Based on CO2 emissions.EUR 15.–
Based on price, CO2 emissions and vehiclelength.Based on price and CO2 emissions.Based on engine capacity: 3.1–18.6%.Based on engine capacity and CO2emissions.
Based on engine capacity and CO2emissions.–Based on price: 1–13%.Based on CO2 emissions; registration chargefrom 0 per cent (emissions <120 g/km) to14.75 per cent (>200 g/km).
–
Environmentbased taxation, taxsubsidies and direct financial subsidy–
Reductions on vehicle purchase price ofvehicles with emissions below 115 g/kmmax. EUR 4,540.–Annual motor vehicle tax based on enginecapacity and CO2 emissions.–Annual motor vehicle tax based on fuelconsumption of the vehicle.––
Buyer of new vehicle with max. emissionsof 125 g/km receives EUR 5,000 bonus.Buyer of new vehicle with max. emissionsof 155 g/km receives incentive payment ofEUR 500, if old car scrapped at the sametime. Environmental charge and annualenvironmental tax for highemission vehicles.Annual motor vehicle tax based on CO2emissions.Annual motor vehicle tax based on CO2emissions.–
–Annual motor vehicle tax based on CO2emissions: EUR 104 (max. 120 g/km) –EUR 2,100 (> 225 g/km).–––Annual motor vehicle tax based on CO2emissions. Buyer of new vehicle with max.emissions of 120 g/km receives incentivepayment of EUR 2,500 and of 120150 g/kmEUR 1,500, if old car scrapped at the sametime.Annual motor vehicle tax based on CO2emissions and age of vehicle.––Buyer of new vehicle with max. emissionsof 130 g/km receives incentive payment ofEUR 1,0001,250, if old car scrapped at thesame time.–
––Buyers of new vehicle with max. emissionsof 149 g/km receive incentive payment ofEUR 2,000, if old car scrapped at the sametime.Annual motor vehicle tax based on CO2emissions. Vehicles classified asenvironmentally friendly exempt from motorvehicle tax.
SUBSIDIES ON THE PURCHASE AND USE OF AN ELECTRIC VEHICLE
ACEA - European Automobile Manufacturers’ Association.
Austria
Belgium
Cyprus
Czech Republic
Denmark
Finland
France
Germany
Great Britain
Greece
Ireland
Norway
Portugal
Spain
Sweden
Vehicles using alternative fuel receive additional bonus of max. EUR 500 at time of registration. Electric vehicles are exempt from registration charge and monthly motor vehicle tax.
Buyers of electric vehicles can deduct 30% of electric vehicle purchase price in taxation on income,max. EUR 9,000.
A subsidy of EUR 700 granted for purchasing an electric vehicle. A company or person is eligible forthe subsidy for a maximum of seven vehicles.
Electric and hybrid vehicles and other vehicles running on alternative fuels are exempt from roadtax. Road tax is only payable on vehicles used for commercial purposes.
Electric vehicles running purely on electricity are exempt from registration charge and pay the lowestpossible annual motor vehicle tax. However, rechargeable hybrid vehicles are not exempted fromthe registration charge.
Motive power tax of electric cars was reduced from the start of 2011 by an average of 77%, ofrechargeable diesel hybrid car by 27%, and of rechargeable petrol hybrid car by over 90%.
A subsidy is available for the purchase of a new vehicle with CO2 emissions not exceeding 125 g/km.The maximum subsidy is EUR 5,000 for vehicles with emissions not exceeding 60 g/km. The subsidysum must not be in excess of 20% of the vehicle purchase price inclusive of VAT. If the battery isleased, the battery cost is added to the purchase price applied to determine the subsidy. Hybridvehicles with emissions of 135 g/km or less receive a subsidy of EUR 2,000.
Electric vehicles are exempt from annual motor vehicle tax for five years, starting from the date offirst registration.
Electric vehicles exempt from annual motor vehicle tax. Electric vehicles exempt from companyvehicle tax for five years. Electric vans entitled to fiveyear exemption from charge (EUR 3,500)payable for the benefit derived from the van. From 2011, buyers of electric vehicles (incl. rechargeablehybrid cars) entitled to 25 per cent reduction off list price of the vehicle, with maximum reductionEUR 5,900.
Electric and hybrid vehicles exempt from registration charge.
Electric and hybrid vehicles receive max. EUR 2,500 deduction from registration charge.
At time of purchase, electric vehicles are exempt from both car tax and value added tax, and theypay a very low annual registration charge. An electric vehicle may be parked free of charge in carparks owned by public authorities. Owners of electric vehicles are exempt from road tolls and alsofares for cars on national car ferries. Electric vehicles also have a higher mileage allowance in thepublic sector.
Electric vehicles are fully exempted from registration charge, and hybrid vehicles receive a 50 percent reduction.
Buyers of electric vehicle receive max. 20% subsidy off vehicle sale price (max. EUR 6,000).
Five-year exemption from annual motor vehicle tax for hybrid vehicles (emissions max. 120 g/km)and electric vehicles consuming 37 kWh/100 km in electricity. The taxable value of electric and hybridvehicles is reduced by 40% in company vehicle taxation compared to corresponding petrol or dieselvehicles. Maximum reduction EUR 1,750 per annum.
The complete survey reportin Finnish is available at
www.energia.fi
or may be ordered in printedformat from Finnish EnergyIndustries. Please send anycomments on the survey [email protected].
Finnish Energy Industries
Fredrikinkatu 51-53 BP.O. Box 100FI-00101 HelsinkiTel. +358 (0)9 530 520Fax +358 (0)9 5305 2900
ET Brussels Office17, Rue de la Charité, 5th floorB-1210 Brussels, BelgiumTel. +358 (0)9 1728 5301Gsm +358 (0)40 569 6996Fax +32(0)2 223 0805
www.energia.fi
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