Are there any recognised environmental taxes payable by businesses?

Tax (3rd edition)

Switzerland Small Flag Switzerland

Businesses in Switzerland are not currently subject to any environmental taxes.

United States Small Flag United States

Yes. The US federal tax system imposes certain environmental taxes on operators of oil refineries and users or exporters of crude oil, as well as certain manufacturers or importers of ozone-depleting chemicals.

Canada Small Flag Canada

The Canadian federal government has announced plans to introduce a carbon tax beginning in 2019. The tax will be $20 per metric tonne in 2019 increasing by $10 every year to a total of $50 in 2022 for all provinces without their own carbon tax. The provinces of Alberta and British Columbia have a carbon tax in place at rates of $30 per metric tonne.

The provinces of Ontario and Quebec have introduced cap and trade systems with respect to greenhouse gas emissions. However, the newly elected Ontario government has announced that it plans to abandon its cap and trade system.

Federal and provincial fuel taxes apply to the sale of gasoline, diesel, propane, furnace oil and natural gas.

Austria Small Flag Austria

There are several taxes in Austria, whose tax base is in dependency of the impact on the environment, e.g. various forms of energy taxes (tax on electricity, gas, carbon, mineral oil, etc), car-related taxes for cars with combustion engines (consumption tax, increased insurance tax, tax on motor vehicles).

France Small Flag France

Ecologic malus is due by any consumer which acquire a non-electric car (higher with the carbon dejections).

The General Tax on Polluting Activities ( TGAP ) currently covers the following categories of polluting activities : waste storage and treatment; emission of polluting substances into the atmosphere; delivery or use of lubricants; delivery or use of laundry preparations; delivery or use of extraction materials; put on the consumption of fuels.

A recycling tax is also applicable on electric and electronic devices called 'Eco participation'. It is borne by the consumers.

Cyprus Small Flag Cyprus

There are no environmental taxes.

Brazil Small Flag Brazil

Yes, there is the Environment Inspection and Control Fee (TCFA tax), which is levied to all potential polluting companies. The TCFA rates varies from BRL 200 to BRL 10.000 per year.

Germany Small Flag Germany

There are no genuine environmental taxes, but the indirect taxes include several excise duties which are considered environmental taxes with respect to their subject, such as vehicle tax, mineral oil tax, energy and electricity tax. Various exceptions apply from the liability of such indirect taxes.

Ireland Small Flag Ireland

Not as such. There are certain incentives such as accelerated tax depreciation allowances on the acquisition of energy efficient equipment and for the use of electric cars.

Israel Small Flag Israel

No.

Malaysia Small Flag Malaysia

As of April 2018, there are no recognised environmental taxes payable by businesses.

However, a series of tax incentives are in place to encourage waste management, green technology, energy conversation and environmental protection.

Mexico Small Flag Mexico

Yes, Mexico imposes taxes on energy use. There is an excise tax on transport fuels and fossil fuels (carbon tax). While the excise tax on transport fuels applies to premium gasoline, regular gasoline and diesel for transport use, the carbon tax applies to, among others, gasoline, diesel, fuel oil, kerosene, LPG and coal for use by households, industry and electricity generation. However, as a share of GDP, Mexico has the lowest environmentally related tax revenue among 34 OECD economies.

Norway Small Flag Norway

There are no genuine environmental taxes, but the indirect taxes include several duties that are considered as environmental taxes with respect to their subject, such as vehicle tax, transport fuel tax, sulfur dioxide and pesticides tax and energy tax.

In addition, there are tax breaks encouraging environmentally friendly activities.

Panama Small Flag Panama

There are no environmental taxes in the Panama Tax Code.

Philippines Small Flag Philippines

There is no environmental tax imposed by the Tax Code. However, there are several special laws that impose environmental fees and charges collected by the national and local governments, such as the Clean Air Act of 1999, Ecological Solid Waste Management Act of 2000, Mining Act, and Clean Water Act of 2004.

Portugal Small Flag Portugal

Environmental taxes have been introduced in Portugal in the last years. There is no tax specifically targeting businesses, save from the carbon tax below mentioned.

Apart from the pre-existing taxes on energy and on the car registration and the annual circulation taxes for vehicles which have a CO2 component, the Portuguese government appointed in 2014 a Commission for Environmental Tax Reform, and thereafter the Parliament approved a new law, enacted on the 1st of January of 2015, which introduced, amongst others, the following measures:

  • Incentive to scrap cars at the end of their working life and acquire an electric vehicle;
  • A tax on plastic bags (passed on to the consumer);
  • Revision of the waste management tax;
  • Revision of the hydric resources utilization tax;
  • Incentives to the use of bike-sharing and car-sharing;
  • An increase on the rates of the Tax on Vehicles using gasoline and gasoil based on the CO2 emissions;
  • Deduction of the VAT for tourism vehicles which are electrical, or hybrid plug-in;
  • A carbon tax on some sectors not included in the European Emissions Trading Scheme.

Italy Small Flag Italy

No.

Turkey Small Flag Turkey

Municipal administrations collect a tax called “environment and cleaning tax” from the occupants of buildings for the use of water. Some other taxes, particularly special consumption tax and motor vehicles tax, are indirectly used as a means to discourage the use of products that have more of an effect on pollution.

Japan Small Flag Japan

Japan has no specific type of tax called as environmental tax; however, effectively the same taxation has been achieved by increasing the rate of petroleum and coal tax according to the expected CO2 emissions. The petroleum and coal tax is one of the indirect taxes of Japan and applies to petroleum, gases and coal as well as some related products. This has been introduced as an anti-global warming measure.

The Netherlands Small Flag The Netherlands

In the Netherlands there is a tax on the use of mains water and an energy tax on electricity and natural gas.

Romania Small Flag Romania

Contributions to environmental fund is due by corporate taxpayers generating greenhouse gas emissions from fixed sources (e.g. heating plants) and those putting on the market packaging materials, oils, tires, batteries, electronic devices, etc. The formula for calculating these taxes is complex and take into consideration several factors, e.g. the amount of materials which are recycled by the taxpayer.

Gibraltar Small Flag Gibraltar

No, there are no such taxes.

United Kingdom Small Flag United Kingdom

Yes. The UK imposes a Climate Change Levy (CCL) on industrial, commercial, agricultural businesses and public services on electricity, gas and solid fuels. Businesses can get a reduction on the rate of CCL if the business has entered into a climate change agreement with the Environment Agency. There are two further environmental taxes of note:

a. A tax on top of normal landfill fees if the business gets rid of waste using landfill sites

b. A tax on sand, gravel and rock that has either been dug from the ground or dredged from the sea in UK waters or imported.

Updated: October 12, 2018