Factsheet: Excise Duties on Energy

Excise Duties on Energy

Key Information
In 1991 a carbon tax was introduced in Sweden. In 2009, the Swedish Parliament approved the Bill 2009/10:41 on energy and climate taxation for the years 2010, 2011, 2013 and 2015, in line with the proposed revision of the EU Fuel Quality Directive, the recast of the Energy Taxation Directive 2003/96/EC and the new ETS period as of 2012/13 which now includes rail/air/sea transport, fishery, raw material use and waste incineration. The reform included an increased carbon dioxide factor in the vehicle tax and a strong rise in carbon dioxide taxes on the non-ETS sectors (agriculture, forestry and some industries). The reform reduced the number of exemptions to domestic industries, thereby enhancing the effectiveness of the energy and carbon dioxide taxes as an environmental signal and revenue base. The carbon dioxide tax rates correspond from January 1st 2014 to approx. 1.10SEK (0.121 EUR) per kilogram carbon dioxide released. Biofuels and peat are not taxed. According to the Act on Excise Duties on Energy relief from energy tax and carbon dioxide tax is granted for fuels used for the production of electricity. A uniform energy tax on fossil fuels was introduced from January 1st 2011. The level in 2014 is 8.3 öre/kWh (100 öre = 0,091 EUR). For the industry, agriculture, CHP included in the EU ETS a 70% deduction is decided. A 100 % reduction of the carbon dioxide tax is granted from January 2013 for fuels used for the production of heat in a combined heat and power plant (CHP) within the EU ETS system. A 100 % reduction of the carbon dioxide tax was granted already from January 2011 for fuels used in the industry, including industry CHP, within the EU ETS system. From year 2011 a 70 % reduction of the carbon dioxide tax is granted for heating purpose for fuel used in the industry and CHP outside the ETS system has been used. From the year 2015 this reduction will be lowered to 40%. For pure heat production plants the reduction is 20 %. In some cases an additional 70 % exemption from the carbon dioxide tax can be obtained via a refund. The sulphur tax on peat, coal, petroleum coke and other solid or gaseous products is set at 30 SEK (3.3 EUR) per kilogram of sulphur in the fuel. The sulphur tax on liquid fuels – such as diesel and heating oils – is 27 SEK (3.0 EUR) per m3 of oil for each tenth of a per cent by weight of the sulphur content. However, oil products with a sulphur content of a maximum of 0.05 % by weight are exempted from tax. Oils with a sulphur content above 0.05 % but below 0.2 % are taxed as oils with a sulphur content of 0.2 %. The nitrogen fee is levied at SEK 50 (5.5 EUR) per kg of nitrogen oxides (designated as NO2) from use of boilers and gas turbines with a utilized energy output of more than 25 GWh/year. The bulk of the fees are repaid to the taxable entities in proportion to their share of utilized energy. Energy tax for electricity 36,75 öre/kWh (29,4 öre/kWh excluding VAT.)