Environmentally related energy taxation in Finland
The general structure of energy taxation in Finland has remained unchanged since 1997. The environmental tax component (i.e. carbon surtax), based on the carbon content of fuels used for heating and transportation is, since January 2008, €20 per tonne of CO2 (€75 per tonne of carbon).
Most recent changes – as of 1 January 2008 – include:
- tax rates were raised by 9.8% on average
- increase in carbon surtax was 13%;
- biofuel oil used in working machines or heating is exempted
- exemptions for hobby aviation, pleasure yachting and waste oil were repealed.
Excise tax rates and strategic stockpile fees in Finland (January 2008)
|
Fuel
|
Basic tax
|
Surtax
(*=carbon comp., €20/tonne CO2)
|
Strategic stockpile fee
|
|
Unleaded petrol, euro cents/litre
- reformulated sulphur free
- other grades
|
57.24
59.89
|
* 4.78
* 4.78
|
0.68
0.68
|
|
Diesel oil, euro cents/litre
- sulphur free
- other grades
|
30.67
33.32
|
* 5.38
* 5.38
|
0.35
0.35
|
|
Light fuel oil, euro cents/litre
|
2.94
|
* 5.41
|
0.35
|
|
Heavy fuel oil, euro cents/kg
|
-
|
* 6.42
|
0.28
|
|
Jet fuel (kerosene),
euro cents/litre
|
33.32
|
* 5.38
|
0.35
|
|
Aviation gasoline,
euro cents/litre
|
37.54
|
* 4.78
|
0.68
|
|
Coal, euros/tonne
|
-
|
* 49.32
|
1.18
|
|
Peat
|
-
|
-
|
-
|
|
Natural gas, euros/MWh
|
-
|
* 2.016
(reduced rate)
|
0.084
|
|
Electricity, euro cents/kWh
- rate I (households,services, agric.)
- rate II (mining, manufacturing)
|
-
-
|
0.87
0.25
|
0.013
0.013
|
|
Pine oil (heating),
euro cents/kg
|
6.70
|
-
|
-
|
Notes:
Notes: The table above is not all-inclusive; substitutes for liquid fuels may face the same rate. Leaded petrol is no longer sold in Finland. Fuels for electricity production (mainly), commercial aviation and commercial yachting exempted; also other exemptions exist. Carbon component for natural gas: reduced rate. Strategic stockpile fee = precautionary stock fee. (For time series use: 1 euro = 5.94573 markka).
Total revenues from the excise on energy products amount to
€2,756m for 2002
€2,865m for 2003
€2,901m for 2004
€2,885m for 2005
€2,946m for 2006
€2,990m for 2007 (budgeted) and
€3,251 for 2008 (budgeted)
Annual revenues from strategic stockpile fee amount to circa €50 million.
The share of liquid fuels in the annual excise duty revenue is circa €2 400 m.
The share of the carbon tax revenue is circa €500 million annually.
|