Indirect Taxes
Green Tax — Overview
| Aspect | 2017 | 2022 |
|---|---|---|
| Status | In force (introduced 2012) | Remains in place following tax reforms |
| Policy objective | Protect the environment and reduce carbon dioxide | Unchanged |
| Motor vehicle rate | 5%–30% depending on vehicle type | Remains in place; revenue significantly increased |
| Fuel rate | 5% on petrol and diesel (applied since 2014) | 5% on petrol and diesel (unchanged) |
| Revenue trend | — | Revenue increased by 67.2% in FY2021-2022, driven by higher collections from both fuel and motor vehicles |
Green Tax Rates for Select Items — Table A.1 (2017)
| Consumption Category | Green Tax Rate (%) |
|---|---|
| Alcohol | 0% |
| Juice | 0% |
| Fuel and lubricants for personal transport (petrol, diesel, etc.) | 5% |
| Spare parts and accessories for personal transport | 0% |
| Telecom services | 0% |
| Glass and crystalware (drinking glass) | 0% |
| Electrical and parts thereof, sound recorders and reproducers | 0% |
| Boilers and parts thereof, lighting and heating | 0% |
| Articles of iron or steel | 0% |