Are there any recognised environmental taxes payable by businesses?

Tax (4th edition)

Angola Small Flag Angola

No.

Brazil Small Flag Brazil

There is no green-tax or similar in Brazil, but some taxes are associated to be reverted to environmental initiatives, as CIDE, CFEM, etc.

Canada Small Flag Canada

In Canada, taxation is a shared jurisdiction. Both the Federal and Provincial Governments can levy taxes.

As of 2019, the Federal Government has adopted a carbon tax applicable to all provinces without a carbon tax already in place. Recently, several provincial governments have launched constitutional challenges over the Federal Government’s ability to impose such a tax.

The Province of Quebec having enacted its own version of the “cap and trade” system in place in California, it is exempted from the federal carbon tax.

Colombia Small Flag Colombia

The following environmental taxes are in force: Carbon Tax; tax on plastic bags; toll surtax applicable to vehicles that transit in protected areas; duties for the use of renewable resources; duties payable by power generation companies; duties for the use of water; and duties for forestry exploitation.

Cyprus Small Flag Cyprus

There are no environmental taxes.

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.

Gibraltar Small Flag Gibraltar

No, there are no such taxes.

Greece Small Flag Greece

Greece imposes special consumption taxes on fuels and electricity generation. Car circulation duties and registration fees are also applicable, as well as a number of other environment related duties and charges (such as a duty on plastic bags).

India Small Flag India

N/A

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.

Italy Small Flag Italy

No.

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).

Japan Small Flag Japan

No. Japan does not have environmental taxes.

Japan has, however, introduced the Taxation System for Global Warming Measures. Under the System, the rate of petroleum and coal tax imposed on petroleum, oil-related products, hydrocarbon gas, and coal is increased so that such tax is imposed at the rate of JPY 289 per 1 ton of carbon-dioxide emitted from such fossil fuels.

Luxembourg Small Flag Luxembourg

According to the latest Eurostat report, Luxembourg has collected the lowest shares of environmental tax revenue in the European Union. Following this, there is no recognizable environmental tax payable by businesses.

Malaysia Small Flag Malaysia

As of September 2019, 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

No environmental taxes are recognised under the applicable Mexican tax laws. However, businesses could be required to pay for specific carbon credits or certificates depending on the number of tons of carbon dioxide produced by them.

What is more, taxpayers that have invested on renewable energy projects could be entitled to accelerated deductions related thereto.

The Netherlands Small Flag The Netherlands

The Netherlands levies energy tax on electricity and natural gas (on-charged by the relevant utility company) and a tax on mains water (on-charged by the relevant utility company).

Peru Small Flag Peru

Yes. Peru imposes excise taxes on the acquisition of fuels and certain types of vehicles, which amount depends upon the level of contamination that those products may generate. For instance, the tax imposed on vehicles with significant cylinder volumes is higher than that imposed on vehicles with lower cylinder volumes. On the other hand, the tax imposed on fuels containing biocomponents is lower than that imposed on less efficient fuels.

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.

Poland Small Flag Poland

The environment fee is payable for following activities:

a. Emitting gases and dust into the air

b. Injecting sewage into the water or soil;

c. Water collection;

d. Waste storage;

e. Rights granted to emit greenhouse gases.

The rates of the environment fee depend on many conditions and the fee is charged by the local government units.

Portugal Small Flag Portugal

Yes. However, the expression of such environmental taxes should take into account the following considerations:

  • In the first place, there is no Carbon Tax in Portugal, as in other Member States.
  • In second place, at the level of indirect taxation, there are Special Consumption Taxes that affect petroleum and energy products (in particular, motor fuels).
  • In third place, in every sector of economic activity (in particular in the energetic and waste sectors) there is a significant amount of applicable fees and contributions with environmental nature.

South Africa Small Flag South Africa

There are a number of environmental taxes payable by business in South Africa. Some pertain to the rehabilitation of land after mining activities have ceased and other, more recent taxes, pertain to the growing problem of climate change and South Africa's commitment to reduce greenhouse gas emissions under the National Climate Change Response Policy.

For example, a new carbon tax was introduced into South Africa from 1 June 2019. A carbon tax will be levied on the sum of greenhouse gas emissions from fuel combustion, industrial processes and fugitive emissions at a rate of R120 per ton carbon dioxide equivalent of the greenhouse gas emissions. This rate will increase at the inflation rate plus 2% until 31 December 2022 and adjusted in line with inflation thereafter. During the first phase of implementation, allowances linked to the nature of activity producing the impugned greenhouse gases are available to taxpayers. The allowances include basic tax-free allowances for fossil fuel combustion emissions and industrial process emissions.

Other environmental taxes include taxes on the manufacture of rubber tyres, a carbon emission tax on the purchase of new motor vehicles, plastic bag levies, electricity levies, incandescent light bulb levies and fuel levies.

Spain Small Flag Spain

There are some taxes aimed to tackle pollution these being mainly focus in the use of dirty energy like diesel or carbon.

In Spain there is an indirect tax on electricity.

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.

Zambia Small Flag Zambia

No.

United Kingdom Small Flag United Kingdom

Yes. The UK imposes a Climate Change Levy (CCL) on industrial, commercial and 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.

Belgium Small Flag Belgium

Yes. Environmental taxes are levied at both Federal level and regional level. Federal environmental taxes include amongst others excise duties levied on certain energy products (petrol, gas, etc) and electricity. At a regional level, environmental taxes are mostly levied on different kinds of waste.

Panama Small Flag Panama

There are no environmental taxes in the Panama Tax Code.

Updated: October 9, 2019