1. APRIL 214 POTENTIAL FOR ENVIRONMENTAL FISCAL REFORM IN 12 EU MS EUNOMIA & AU STUDY FOR DG ENV - RESULTS AND REFLECTIONS VERSITET UNI
Getting the prices right, means using fiscal policy to make sure, that the harm we do is reflected in the prices we pay Christine Lagarde, IMF (June 212)
ENVIRONMENTALLY-RELATED TAX REVENUES AS A SHARE OF TOTAL REVENUES FROM TAXES AND SOCIAL CONTRIBUTIONS 3
RELATIVE BENEFITS (FISCAL CRISIS) indirect taxes - incl. on energy - less damaging 4
ENVIRONMENTAL TAX REVENUES (% GDP) 5
NOW + NEW BY 225 (% GDP) 4,5% 4,% Total Env. Taxes in 211 Total Additional from Env. Taxes in 225 3,5% Revenues as % GDP 3,% 2,5% 2,% 1,5% 1,%,5%,%
KEY RESULTS IN 12 MS 7 6 Env. Taxes EHSs Revenues Generated ( billions) 5 4 3 2 1 Austria Belgium Czech Republic Estonia France Croatia Hungary Italy Lithuania Poland Romania Slovakia
SUMMARY BY CATEGORY 1,% 8,9% 7,8% Revenes Generated (% GDP) 6,7%,6% 5,5% 4,4% 3,3% 2,2%,1% 1,% Total Energy Taxes Total Transport (excl. transport fuels) Taxes Total Pollution and Resource Taxes Total Energy Taxes Total Transport (excl. transport fuels) Taxes Total Pollution and Resource Taxes, billion % GDP Revenues Generated (billion Euros)
ENERGY TAXES (225) INCL. MOTOR FUELS 4 35 3 25 2 15 1 5 Energy Excise Duties - Transport fuels Energy Excise Duties - C&I / Heating Energy Excise Duties - Electricity Total Energy Taxes Energy Excise Duties - Transport fuels Energy Excise Duties - C&I / Heating Energy Excise Duties - Electricity Total Energy Taxes, billion POTENTIAL % GDP FOR ENV. FISCAL REFORM,5%,45% Revenes Generated (% GDP),4%,35%,3%,25%,2%,15%,1%,5%,% Revenues Generated (billion Euros)
TRANSPORT (225) EXCL. MOTOR FUELS 8 7 6 5 4 3 2 1 Vehicle Taxes Passenger Aviation Tax Freight Aviation Tax Total Transport (excl. transport fuels) Taxes Vehicle Taxes Passenger Aviation Tax Freight Aviation Tax Total Transport (excl. transport fuels) Taxes 1,%,9%,8%,7%,6%,5%,4%,3%,2%,1%,% Revenes Generated (% GDP) Revenues Generated (billion Euros), billion % GDP
POLLUTION AND RESOURCE TAXES (225 3,35% 25 2 15 1 5,3% Revenes Generated (% GDP),25%,2%,15%,1%,5%,%, billion POTENTIAL % GDP FOR ENV. FISCAL REFORM Revenues Generated (billion Euro)
ENERGY INCL. MOTOR FUELS 12
ENERGY TAXATION DIRECTIVE AMENDMENT Remove inconsistencies and equalise tax rates per GJ Introduce CO 2 element in tax base (at ETS price) Motor fuels Heating fuels Figure 2: Existing minima expressed in euro per GJ Figure 4: Current minima expressed in euro per GJ 18 16,6 14,5 12 1 8,4,3 6,2 4 2 1 petrol diesel LPG E85,1 1 MIKAEL SKOU gas oil ANDERSEN natural gas coal 13
IMPLICIT TAXATION OF HEATING FUELS (NON-BUSINESS) ETD-new 14
IMPLICIT TAXATION OF HEATING FUELS (BUSINESS) ETD-new 15
REPORTED TAXATION OF MOTOR FUELS IN 12 MS (JULY 213) 16
IMPLICIT TAXATION OF MOTOR FUELS (JULY 213 WITH EXISTING ETD MINIMUM AND ETD PROPOSED 218) CO2 at 2/t 9.6/GJ 17
ELECTRICITY IN ETD-218 18
TRANSPORT EXCL. MOTOR FUELS 19
EUROPEAN FRAMEWORK FOR VEHICLE TAXATION Passenger vehicles Commission Proposal COM(25)261 final: framework for transition to annual circulation taxes (differentiated according to CO2 emissions) and gradual phasing out of registration taxes Commission Communication COM(212)756 final: clarifying present legal framework for registration and circulation taxes Heavy goods vehicles Eurovignette Directive: framework for road pricing (incl. external costs of congestion, air pollution and noise) 2
per year Circulation tax Registration tax/yr AT BE FR IT CZ HU PL SK EE LT HR RO REPORTED TAXATION OF PASSENGER VEHICLES BASED ON EUROSTAT NATIONAL TAX LIST AND EEA DATA 154 3 186 54 67 18 395 74 34 86 32 5 38 19 Sum per vehicle 549 374-22 54 153 32 113 38 19 21
TAXATION OF VEHICLES IN % OF GDP EUROSTAT NATIONAL TAX LIST Tax take in % GDP Transport taxation Best quartile EU28 Potential AT BE FR IT 2.11 1.73 1.42 2.22 2.67 2.67 2.67 2.67.56.94 1.25.45 CZ HU PL SK 2.21 2.25 2.8 1.75 2.67 2.67 2.67 2.67.46.42.59.92 EE LT RO 2.3 1.64 1.55 2.67 2.67 2.67.64 1.3 1.12 22
POLLUTION & RESOURCES 23
EUROPEAN FRAMEWORK FOR POLLUTION & RESOURCE TAXATION Eurovignette Directive Art.: Definition of external costs for air pollution and noise Water Framework Directive (WFD) Art. 9: Cost-recovery including environmental & resource costs Annex VI cf. Art 11(4): Economic and fiscal instruments Relevance: water abstraction waste water discharges fertilisers pesticides - chemicals Packaging and Packaging Waste Directive Art. 15: Use of economic instruments Waste management consultation: landfill/incineration tax 24
TAX ON WATER ABSTRACTION DOMESTIC 25
IMPLICATIONS & REFLECTIONS Main results Feasible to identify revenues for budget consolidation and/or tax shifting Need for improved data and analysis on vehicle taxation Items of further interest Cost recovery for environmental services (water, waste, waste water etc) Potential for HGV road pricing in view of road infrastructure arrangements Chemicals/Land use/biodiversity/recreation Windows of opportunity European Semester CSR New revenue sources for RES Energy security 26