Factsheet: Energy Tax

Energy Tax

Key Information
Description: 
Energy taxes are excise taxes, which are levied on transport and heating fuels and electricity. In addition to energy tax, a security of supply fee is charged on energy products. Energy tax is divided into the basic tax and additional tax. The basic tax is fiscal in nature and is levied only on oil products. The basic tax on petrol and diesel is staggered in accordance with their grade and environmental characteristics. Additional tax is levied on oil products and other fossil fuels and electricity. The additional tax on fuels is determined on the basis of their carbon content. Natural gas is an exception which has been granted a 50% discount on the additional tax. The additional tax on peat was eliminated as of 1 July 2005. Electricity is taxed during the consumption phase. The fuels used for power generation are tax exempt. Electricity tax has been divided into two taxation categories, the lower of which, category II tax, is paid by industry and professional market gardeners. Other consumers pay the higher category I tax. Additionally, the energy taxation system also entails various kinds of subsidies, the most important of these from the energy policy perspective being the tax support paid for power generation based on renewable sources of energy.
Goal/Aim: 
Regulate excise tax on energy products (electricity, heating fuels).

Status: