1.9 Excise taxes on principal petroleum products

Energy taxation in Finland

A comprehensive reform of Finnish energy taxation came into force on 1 January 2011.

The reform amended the Act on Excise Duties of liquid fuels, electricity and certain other fuels so that taxation is based on the fuels' energy content and on the specific carbon dioxide emissions emitted in combustion. This structural change was also expanded to apply to heating and power plant fuels. At the same time, the name of the tax was changed to Energy Content Tax and Carbon Dioxide Tax. No changes were made to the Strategic Stockpile Fee levied on imported fuels.

The structural change of the transport fuel taxation came also into force on 1 January 2011 as a part of the overall energy tax reform.

According to the new model, a proportional energy content tax based on the known caloric value of the fuel is levied on all fossil and bio-based transport fuels. The earlier per litre tax did not take into account the caloric content of the fuels and was inequitable in the case of ethanol, for example.

The regulatory character of energy taxes was emphasized in the structural change, as the share of the tax based on carbon dioxide emissions was made bigger. The change benefits carbon dioxide poor biofuels, and takes into account especially the emission reductions attained through biofuel use as compared with fossil fuels.

A new quality scaling was introduced for the transport fuels, which takes into account local emissions that are hazardous for health. No changes were made to the transport fuel tax level or the strategic stockpile fee.

Excise taxes on principal oil products 2015-2017

Below you can find the pictures

  • Excise tax revenue by energy source 2000-2013
  • Tax revenue from road transport 2000-2014

Finnish Petroleum and Biofuels Association | Unioninkatu 22 | 00130 Helsinki  |  Finland  | office@oil.fi