Embed Size (px)
Citation preview
Green Taxation: A Contribution to Sustainability
30th of April 2013
Fundaçao Calouste Gulbenkian
Lisbon
The need for fiscal consolidation.
Recent developments in Spain
Nuria Badenes Plá
INSTITUTO DE ESTUDIOS FISCALES, Madrid. Spain
Why is there a need for fiscal consolidation?
The evolution of the basic parameters of tax structures until 2007 reflected a stable,
almost unchanged in fiscal models, culminating the adaptation process associated
with the strongest period of economic expansion that began in the 90s.
In 2008 and after a period of evolution of tax structures fairly stable, the economic
scenario was reversed and dragged radical fiscal and budgetary policies. Some figures
show the seriousness of the situation.
-2
-1,5
-1
-0,5
0
0,5
1
1,5
2
2,5
2006T
I
2006T
II
2006T
III
2006T
IV
2007T
I
2007T
II
2007T
III
2007T
IV
2008T
I
2008T
II
2008T
III
2008T
IV
2009T
I
2009T
II
2009T
III
2009T
IV
2010T
I
2010T
II
2010T
III
2010T
IV
2011T
I
2011T
II
Quaterly variation
GDP (market prices) rate of variation
-140.000,00 €
-120.000,00 €
-100.000,00 €
-80.000,00 €
-60.000,00 €
-40.000,00 €
-20.000,00 €
0,00 €
20.000,00 €
40.000,00 €
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Million €
Evolution of Spanish deficit (million €)
In 2008, the economic crisis led to a drop of 0.4 points of revenue collection GDP
in the EU countries and a general slowing in the growth figures. Spain was not
immune to this general trend, and the impact was much deeper (4.4 points of GDP)
.
0
50.000
100.000
150.000
200.000
250.000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Personal Income tax Corporate Tax VAT Excise Taxes
Anual revenue in thousand €
From 2011 the need to combine expenditure and revenue adjustments set a new
challenge for Fiscal Reform: to choose the least harmful tax options in the
production function and achieve compatibility with consolidation strategies,
growth and reducing inequality.
Some EU countries opted for quick-impact reforms (eliminating tax benefits and
increasing rates), basically in income taxation.
These proposals are being controversial in light of the analysis of international
organizations, as it has been shown that it is preferable for achieving economic
growth to use consumption, property and the environment as tax bases, rather
than the imposition of income.
Since the early nineties, Spain has remained untouched by the growing importance
of energy and environmental taxation and green fiscal reform in most countries of
the EU and OECD. Environmental Taxation in Spain has been confined to the
initiatives of the regional governments, with little relevance of collection tax
figures.
Conclusion: Spain counts on environmental taxes whose only environmental
feature is its name.
Some evidence:
Total environmental tax revenues as a share of total revenues from taxes and
social contributions (%). 2010
0
2
4
6
8
10
12
Some evidence: 2010
0 0,5 1 1,5 2 2,5 3 3,5 4 4,5
Lithuania
Ireland
Greece
Spain
Romania
France
Belgium
Austria
Slovakia
Malta
Germany
EU (27 countries)
Italy
Portugal
United Kingdom
Czech Republic
Norway
Latvia
Luxembourg
Poland
Finland
Netherlands
Hungary
Bulgaria
Estonia
Sweden
Cyprus
Slovenia
Denmark
Diference Environmental taxation/GDP Enviromental expenditure/GDP
Some evidence: 2010
Anual per capita € paid for environmental taxes
117 139 154 192 227 240 254 318 340 377 405
456 485 535 555 584 618 631 632 668 670 676 719
810 826 930
1023
1420
1689 1707
1908
0
500
1000
1500
2000
2500
RECENT DEVELOPMENTS IN SPAIN:
The Spanish Government identified the deficit as the main problem that threatens the
economic sustainability of the electricity system and announced its intention to take
measures for correction. (24.000 million € accumulated gap, 2,5% of GDP; 4.281 million € in 2012)
Royal Decree-Law 1/2012 sought a temporary limit costs for the electrical system by
removing economic incentives for production of electricity in facilities under
special regime.
Subsequently approved Royal Decree-law 13/2012 and 20/2012, which established a
new set of urgent measures to contain the costs of certain activities and regulated
costs of the electricity system, with the goal of reducing temporary mismatches
for 2012, both for the electricity sector to the gas, respect the deficit limit set for 2012
and achieve tariff sufficiency in 2013.
Given the failure of these measures to contain the tariff deficit, the Government
found it necessary to introduce new tax figures to cover certain costs of the electric
system.
According to government estimates, the revenue derived from new tax measures in
electricity and gas will be approximately 2,900 million €.
RECENT DEVELOPMENTS IN SPAIN:
Law 15/2012 of 27 December of Fiscal Measures on Energy Sustainability :
This law regulates three new taxes:
1. Tax on the value of the production of electric energy
2. Tax on the production of nuclear fuel and radioactive waste resulting from nuclear
power generation
3. Tax on nuclear fuel and radioactive waste storage in centralized facilities
Other measures:
• Creation of a fee for the use of inland waters for the production of electricity
• Modification of natural gas and coal tax rates
• Removal of exemptions for energy products used in the production of electricity and
cogeneration of electricity and useful heat.
1. Tax on the value of the production of electric energy
2. Tax on the production of spent nuclear fuel and radioactive waste resulting from
nuclear power generation
3. Tax on nuclear fuel and radioactive waste storage in centralized facilities
• Creation of a fee for the use of inland waters for the production of electricity
• Modification of natural gas and coal tax rates
• Removal of exemptions for energy products used in the production of electricity
and cogeneration of electricity and useful heat.
TAX ON THE VALUE OF ELECTRICITY PRODUCTION
It is levied on production activities and incorporation into the electric power system
in the Spanish electricity system (production and incorporation into the electric power system, measured in
central bars)
All economic compensations shall be considered (market + bonus, incentive and / or
supplements, if any) in the calculation of taxable base.
The tax rate is unique, 7% “ad valorem”, to be applied to income earned by each of
the electricity production facilities.
The taxable event occurs on the last day of the tax period, coinciding with the
calendar year. Taxpayers are required to self-assess the tax and enter the quota within
the month of November after tax accrual. However, four account payments on
account will be made between the 1st and 20th of the months of May, September,
November and February the following year. (for consideration of definitive measures
of electricity)
TAX ON PRODUCTION OF SPENT NUCLEAR FUEL AND
RADIOACTIVE WASTE RESULTING FROM NUCLEAR-ELECTRIC
POWER GENERATION
Levied on the production of spent nuclear fuel and radioactive waste resulting from
nuclear power generation.
The taxable base is determined for each facility
Tax rates that apply to each base are:
Tax Base Tax Rate
Kilograms of heavy metal (uranium and plutonium) content in nuclear fuel
produced during the tax period, understood as that fuel
irradiated in the nuclear reactor during the tax period has been
removed permanently.
2.190 €/kg
Cubic meters of radioactive waste of low and intermediate activity level
which have been prepared for temporary storage on the same site of the
installation during the tax period.
6.000 €/ m3
Cubic meters of radioactive waste of very low activity level, which
have been prepared for temporarily storage in the same site of the installation
during the tax period
1.000 €/m3
TAX ON SPENT NUCLEAR FUEL AND RADIOACTIVE WASTE
STORAGE IN CENTRALIZED FACILITIES
Levied on the storage of spent nuclear fuel and radioactive waste at a centralized
facility. The tax replaces and unifies the existing regional taxes on this subject.
• What is storage of spent nuclear fuel and radioactive waste? any activity
involving their immobilization, temporarily or permanently, regardless of how.
• What is a centralized installation? an installation that stores these materials from
different facilities or sources.
There is also some exemption for the storage of radioactive waste from medical
or scientific activities…
Tax base and rates are as follows:
Tax base Tax rate
Difference between the weight of the heavy metal content of spent nuclear
fuel stored at the end and the beginning of the tax period
70 €/Kg.
Difference between the volume of long life high-level radioactive waste, other
than spent nuclear fuel, or long life intermediate activity level, which are
stored, at the end and the beginning of the tax period, expressed in cubic
meters
30.000 €/m3
Volume of radioactive waste of medium, low or very low activity, introduced
into the storage facility during the tax period, expressed in cubic meters
Medium and low activity
10.000 €/m3
Very low activity:
2.000 €/m3
MODIFICATION OF EXCISE TAXES
Natural gas:
Natural gas has been enjoying a zero tax rate, temporarily allowed by Directive
2003/96/EC. Now, there is a positive rate for natural gas used as fuel in stationary
engines, as well as to natural gas for purposes other than fuel.
However, there is a reduced tax on natural gas for commercial purposes if they are
not processes used in electric generation and cogeneration
Coal:
To take a similar approach to the production of electricity from fossil energy
sources, a raise on the tax rate on coal
Fueloils and gasoils:
At the same time, specific rates on fuel oils and gas oils intended for electrical
energy production or cogeneration of electricity and useful heat are created.
Water Duty:
A new duty on the use or exploitation of inland water for hydroelectric purposes
Until 31-12-2012 From 1-1-2013
General rate Special rate
Leaded gasoline 433,79 €/1.000 l. 433,79 €/1.000 l. 24 €/1.000 l.
Unleaded Gasoline 98 I.O. or
higher octane
431,92 €/1.000 l. 431,92 €/1.000 l. 24 €/1.000 l.
Other unleaded gasoline 400,69 €/1.000 l. 400,69 €/1.000 l. 24 €/1.000 l.
Diesel for general use 307 €/1.000 l. 307 €/1.000 l. 24 €/1.000 l.
Diesel used as fuel in the applications described in
paragraph 2 of Article 54 and, in general, as a fuel
(except for the production of electricity or
cogeneration 29,15 €/1.000 l)
78,71 €/1.000 l. 78,71 €/1.000 l. 6 €/1.000 l.
Fuel oils (except for the production of electricity or
cogeneration 12 €/Tn)
14 €/Ton. 14 €/Ton. 1€/Ton.
Liquefied petroleum gas (LPG) for general use 57,47 €/Ton. 57,47 €/Ton.
(Unchanged)
LPG for uses other than fuel 0 €/Ton 15 €/Ton.
Natural Gas for general use 0 €/Ton 1,15 €/Gj
Natural gas for purposes other than those of fuel, as
well as natural gas for use as fuel in stationary
engines
0 €/Ton 0,65 €/Gj
If natural gas is intended for professional use and
not processes electricity generation and cogeneration
0 €/Ton 0,15 €/Gj
Until 31-12-2012 From 1-1-2013
General rate Special rate
Kerosene for general use 306 €/1.000 l. 306 €/1.000 l. 24 €/1.000 l.
Kerosene destined for use other than fuel 78,71 €/1.000 l. 78,71€/1.000 l.
Unchanged
Bio-ethanol and bio-methanol for use as fuel: 0 €/1.000 l.
a) Biomethanol and bioethanol mixed with
unleaded gasoline of 98 IO or higher octane
431,92 €/1.000 l. 24 €/1.000 l.
b) Bio-ethanol and bio-methanol, mixed with
other unleaded gasoline or unmixed
400,69 €/1.000 l 24 €/1.000 l.
Biodiesel for use as fuel 0 €/1.000 l. 307 €/1.000 l. 24 €/1.000 l.
Biodiesel and bio-methanol for use as fuel 0 €/1.000 l. 78,71 €/1.000 l. 6 €/1.000 l.
Section 1.16. Gas oils for the production of
electricity or cogeneration
29,15 €/1.000 l.
Section 1.17. Fuel oils for the production of
electricity or cogeneration
12 €/Ton.
Special rate known as “Green cent”, a duty for enviromental use
Excise Tax on Coal:
To take a similar approach to the production of electricity from natural gas, there is a
raise on tax rate on coal from € 0.15 to € 0.65 per gigajoule
Also removal of the exemption on transactions for preparing coal consumption when
involving the subsequent use for electricity production and cogeneration of electricity
and heat.
Duty to Hydroelectric Generation:
Levied on the use or exploitation of inland waters for hydropower development.
The annual tax rate will be 22% of the value of the tax base.
Exempt from paying this fee: directly exploited hydroelectric by the competent authority
for the management of public water.
Reduction of 90% for:
(i) hydroelectric power installations not exceeding 50 MW (electricity special regime)
(ii) for facilities exceeding 50 MW producing electricity using pumping hydraulic
technology
(iii) for those productions or installations that should be encouraging for overall energy
policy reasons, as determined by regulation.
REVENUE
Revenue Earnmarking
Budget laws state that each year the revenue will be used to finance the deficit in
electrical system. An amount equal to the sum of:
- The estimate of annual revenues for the state taxes and fees included in the
law 15/2012.
- The estimated revenue from the auctioning of emission permits of
greenhouse gases, with a maximum of 450 million €.
Estimated revenue by the Government: about 2.900 million €.
- New nuclear energy taxes, is estimated to achieve annual revenues of 296.6 million €
- New canon on hydropower generation is estimated a revenue of 304.2 million €
between 2013 and 2015
- New nuclear and hydroelectric impositions, 574 million €
- Natural gas (804 million €), Power generation with coal (268 million €) and fuel oil
(38 million €).
-There will be revenue from the sale of CO2 emission rights for 450 million €.
- The sales tax of 6% electricity, at the state level, 571.7 million €
Gasoline
2007 2008 2009 2010 2011
Price witout taxes 50,53 57 45,04 56,69 69,03
VAT 14,46 15,49 13,84 16,9 20,11
Hidrocarbon excise tax 37,47 37,44 39,06 40,31 40,26
Retail excise tax on
hidrocarbons (estate
rate) 2,4 2,4 2,4 2,4 2,4
Automotive diesel
2007 2008 2009 2010 2011
Price witout taxes 53,46 68,2 46,78 58,8 74,27
VAT 13,39 15,74 12,58 15,62 19,33
Hidrocarbon excise tax 27,8 27,8 29,43 30,7 30,7
Retail excise tax on
hidrocarbons (estate
rate) 2,4 2,4 2,4 2,4 2,4
Subsidized diesel
Price witout taxes 51,33 69,96 44,98 57,65 73,2
VAT 9,57 12,55 8,55 11,24 14,7
Hidrocarbon excise tax 7,87 7,87 7,87 7,87 7,87
Retail excise tax on
hidrocarbons (estat
rate) 0,6 0,6 0,6 0,6 0,6
0%
20%
40%
60%
80%
100%
2007 2008 2009 2010 2011
0%
20%
40%
60%
80%
100%
2007 2008 2009 2010 2011
Retail excise tax on hidrocarbons (estat rate)
Hidrocarbon excise tax
VAT
Price witout taxes
0%
20%
40%
60%
80%
100%
2007 2008 2009 2010 2011
Prices in cents per liter
The problem of lower taxation of diesel compared to
gasoline persists even after the reform.
0%
20%
40%
60%
80%
100%
2007 2008 2009 2010 2011
0%
20%
40%
60%
80%
100%
2007 2008 2009 2010 2011
Retail excise tax on hidrocarbons (estat rate)
Hidrocarbon excise tax
VAT
Price witout taxes
0%
20%
40%
60%
80%
100%
2007 2008 2009 2010 2011
Prices in cents per liter
The problem of lower taxation of diesel compared to
gasoline persists even after the reform.
Gasoline
2007 2008 2009 2010 2011
Price witout taxes 50,53 57 45,04 56,69 69,03
VAT 14,46 15,49 13,84 16,9 20,11
Hidrocarbon excise tax 37,47 37,44 39,06 40,31 40,26
Retail excise tax on hidrocarbons
(estat rate) 2,4 2,4 2,4 2,4 2,4
Consumers price 104,86 112,33 100,34 116,3 131,8
Automotive diesel
2007 2008 2009 2010 2011
Price witout taxes 53,46 68,2 46,78 58,8 74,27
VAT 13,39 15,74 12,58 15,62 19,33
Hidrocarbon excise tax 27,8 27,8 29,43 30,7 30,7
Retail excise tax on hidrocarbons
(estat rate) 2,4 2,4 2,4 2,4 2,4
Consumers price 97,05 114,14 91,19 107,52 126,7
Subsidized diesel
2007 2008 2009 2010 2011
Price witout taxes 51,33 69,96 44,98 57,65 73,2
VAT 9,57 12,55 8,55 11,24 14,7
Hidrocarbon excise tax 7,87 7,87 7,87 7,87 7,87
Retail excise tax on hidrocarbons
(estat rate) 0,6 0,6 0,6 0,6 0,6
Consumers price 69,37 90,98 62 77,36 96,37
Why Spanish Government is reluctant to increase tax on diesel?
There is not an official explanation.
One possibility is the desire to protect those sectors that use diesel more intensively,
such as transport and agriculture
Weight of diesel/gasoline compared with total
energy consumption
Diesel Gasoline
Industry 4,0% 0,0%
Transport 63,1% 14,6%
Road 75,4% 18,4%
Train 66,8% 0,0%
Maritime 82,9% 0,0%
Agriculture 70,5% 0,0%
Agriculture: employment 4,1%. PIB 3,6% (2010)
Transport: 5,5% 5%
Other problems have been fixed, such as zero tax on natural gas and coal preferential
treatment
What about tourism taxation?
There are figures like “ecotax” whose purpose is not clearly related to environmental
protection and it can lead to competition problems if not applied in all the territories. The
theoretical argument is environmental protection, but often the underlying purpose is tax
collection.
The Balearic ecotax (1 € per overnight) was deleted, but between May 1 2002 and October
2003 got 60 million euros, which served to demolish buildings or buying property in the
historic center of Palma. The eco-tax was levied only to hotel guests and revenue was
earmarked exclusively-in theory-to improve the environment of the islands.
Balearic introduced a new eco-tax on car rental without driver in 2012. Examples of eco-
tax in Spain:
- Balearic ecotax for car rental: levied on the rental company, and depends on the
pollution generated. Exempts subsidized electric and hybrids. Between 3 and 7.5 € per car
per day. Two examples of projects to be funded through the ecotasa in Baleares are hiring
unemployed and the creation of new cultural and tourist itineraries under the name of
“Stroll through the Islands”.
- Ecotax on beverage containers (between 5.6 cents and 2.20 €) (indirectly affects the
tourism sector and overall consumers directly)
Catalonian ecotax: from November 1, 2012. Levied in overnight stays, camping, cottages,
lodges and cruises. Between 0.45 and 2.25 per person per day (except under 16 years). The
Government forecasts point to an income of at least 45 million euros. The money would
go to cover the costs of promotion, development and creation of tourism infrastructure
and protection of tourist areas.
Remember that in Spain has risen further the reduced VAT rate of 8 to 10% (affecting
hotels and restaurants) and other active tourism, theme parks, clubs, golf, rose from 8%
non-taxed 10% but 21%. The contribution of tourism to GDP is 11%, and these
measures have generated a huge rejection, although there are those who reject the
arguments apocalyptic decline in tourism. (Spain is still the fourth most visited
destination in the world (surpassed only by the U.S., France and China) and the second
gets more revenue).
Many times we talk about these taxes and environmental, when really they are not,
because the base does not account for environmental degradation, just the nights
that tourists spend in a given housing. The are a tax on tourism, and they lack the
environmental component. The underlying purpose is the exploitation of a resource
buoyant, at least in Spain.
It is important to remember how we define "green taxes"? They are those whose
central objective is conservation and environmental protection.
The most important reasons for creating environmental taxes are based on the
following premises:
1) Search behaviors that affect the consumption of certain products that
cause less environmental impact on its surroundings
2) To promote and encourage the investment in clean technology, methods
of proper use of inputs and raw materials with less negative environmental
impacts.
3) Generate revenue that may have specific targets for conservation and
maintenance of natural resources.
Taxation is a form (among several) possible to combat environmental degradation. An
environmental tax reflects the "polluter pays principle ", so internalizes pollution costs
generated by activities that are not considering as such environmental expenses and
damages.
The ultimate goal is to create a disincentive so great that generates a change in
pollutant behavior. Therefore it is essential to quantify the effects of taxation, otherwise
the purpose is merely revenue collection. But the evidence shows that taxes are paid and
the environment continues to deteriorate
Green taxes?
The key to solving the problem of the misuse of environmental taxation may be in the
internalization of a culture of evaluation.
The cause-effect relationship between green taxation and changes in the behavior of
pollutants must be determined.
If these changes do not even take place, is that green taxation is not working.
The desirable characteristics of an environmental tax
- Environmental effectiveness
- Efficient
- Distribution
- Viable in administrative terms
The double dividend argument reinforces the desirability of green taxation. Although
the primary purpose of green taxation is environmental protection, the revenue
obtained in this way can be used to reduce the pressure generated by other distortionary
tax figures, so that the same revenue is obtained more efficiently and redistributive.
For having a double dividend as a reality it is necessary that the revenue from the
environmental taxation is significant and stable over time.
In Spain, the crisis could open an opportunity to introduce true green taxation, but it is
difficult to start from scratch.
ALL THESE NEED FOR
EVALUATION
FINAL CONCLUSIONS:
1. Environmental taxation has not really taken seriously in Spain for several reasons.
First, because the aim has been basically tax collection, losing the essence that
justifies environmental taxation. In many cases green taxes have green only the
name. Second, because evaluation is necessary to quantify and correct the
contamination externalities involved. Evaluation is necessary also for measuring
the efficacy of the tools, in terms of externality correction, other side effects, in
terms of redistribution or competitiveness of sectors. The evaluation is not
practiced nor ex ante or ex post.
2. Enviromental taxation in the Spanish central level is small and focused on
the energy sector. Some of the mechanisms that generate negative impacts have
been fixed with the latest amendments as subsidies to coal gas or exemption.
Other persist, such as differentiation between the taxation of gasoline and diesel.
3. The Spanish environmental taxation has been developed through individual
actions at the regional level, without considering national coverage.
Autonomous Communities mainly tax hydroelectric, nuclear and wind
turbines, but without considering the effect of pollution. (For example non-
emitting or renewable technologies are taxed, which goes against the CO2
reduction targets). The non-homogeneus action of the AC autonomic
decisions prevents the achievement of a uniform treatment on the electricity
sector, which is corrected by the establishment of a fee by RDL 20/2012.
4. Once exhausted the traditional tax bases, during the crisis, Spain may open
an alternative route by using green taxation. What may be an opportunity
to improve the overall tax system and take advantage of the double dividend is
not being done, both for the reasons stated above and the difficulty to "start
from scratch" given a consolidated tax system. For a green tax reform was
successful, it would be necessary to carry out coordinated actions by the ACs
both in terms of legislation such as the use of the collection.
5. If the objective is environmental protection, there are other "command and
control" mechanisms that anticipate the final outcome, which is not achieved
with taxes. But environmental taxation is possibly being used as a
revenue-raising tool in times of crisis.
Thank you for your attention
Other information
How is the Green Taxes structure in Spain?
Central level:
Environmental taxes:
- Tax on hydrocarbons: taxing products specifically intended for use as fuel, or fuel
additives to increase the volume of motor fuels. Is required throughout the Spanish
territory except Canary Islands, Ceuta and Melilla.
-Electricity tax: levied on the manufacture of electric energy.
- Tax on retail sales of certain hydrocarbons (health penny): ceded to CCAA, its
revenue is affected health spending except autonomic component, which is intended
for environmental purposes. Taxes the consumption of certain hydrocarbons, and is
set only available at retail. From January 1, 2013 and will be included repealing the tax
on hydrocarbons.
--Excise tax on certain means of transport: levied on the first registration of transport
elements
- Excise duty on coal.
Introduction of environmental component:
- VAT: reduced rate for collection services and waste treatment, cleaning of sewers
and wastewater treatment, waste exemption deliveries of paper, cardboard and scrap
glass.
- IS: the gross tax deduction of 10% for investments in property, plant and
equipment for environmental protection
- Income Tax: Business Services, the same under IS, and tax exempt capital grants for
sustainable management of forests in forestry
- Tax on hydrocarbons: consideration of a lower tax rate for unleaded petrol off the
lead, liquefied petroleum gas, oils exemption
Subcentral level (Autonomous Communities):
Environmental taxes:
The regions have done a fairly intensive use of environmental figures. Some examples
are:
Water fees, Civil Protection tax, Big mall tax, Controlled disposal of municipal waste fee,
Incineration of municipal waste fee, Tax on Air Pollution, Tax on gas emissions into the
atmosphere, Tax on radioactive waste repository, Tax on hazardous waste, Tax on plastic
bags for single use, Tax on the development of certain activities that affect the
environment, Sanitation tax, Tax on deposit of waste in landfills, Tax on discharges to
coastal waters, Tax on greenhouse gas emissions into the atmosphere, Tax on
environmental impairment caused by certain uses of water stored, by wind farms and
transport facilities of high voltage electricity, Tax on beneficiaries of hunting…
Subcentral level (Local Taxation)
Environmental taxes:
Tax on motor vehicles (local): levied on the ownership of vehicles of this type
suitable for public roads.
Introduction of environmental component:
- Tax on motor vehicles: facultative bonuses up to 75% depending on the type of fuel
and engine characteristics of the vehicle.
- Real Estate tax: Exemption in terms of the surface populated with slow growing
species for the use of cork or wood, and a bonus of up to 50% when systems are
installed for thermal or electrical.
- Business tax: bonus of up to 50% share of production or use of renewable energy
or cogeneration, undertake activities away from populated areas, or establish
transportation plans that reduce energy consumption or emissions.
- Tax on buildings, facilities and works: a bonus of up to 95% for installation of
electrical or thermal use of solar energy.
Personal Income tax
35%
Corporate Tax 21%
VAT 32%
Excise Taxes 12%
Tax share 2005
Personal Income tax
44%
Corporate Tax 13%
VAT 32%
Excise Taxes 11%
Tax share 2012
Tax revenue in million €
In million €
Personal Income tax Corporate Tax VAT Excise Taxes Total
1995 31.418 7.605 20.337 11.489 70.848
1996 31.674 8.287 21.784 12.344 74.089
1997 33.367 12.634 24.149 12.446 82.596
1998 34.087 13.977 26.242 14.372 88.677
1999 35.460 14.636 30.735 15.425 96.255
2000 36.766 17.207 33.389 16.056 103.418
2001 41.371 17.215 34.673 16.576 109.835
2002 44.344 21.437 36.913 16.150 118.844
2003 46.451 21.920 40.579 16.853 125.803
2004 47.722 26.020 44.507 17.514 135.763
2005 54.723 32.495 49.870 18.022 155.110
2006 62.813 37.208 54.652 18.602 173.275
2007 72.614 44.823 55.851 19.786 193.075
2008 71.341 27.301 48.021 19.570 166.233
2009 63.857 20.188 33.567 19.349 136.961
2010 66.977 16.198 49.086 19.806 152.067
2011 69.803 16.611 49.302 18.983 154.699
2012 70.619 21.435 50.464 18.209 160.727
