Renewable industry strategy - Changes in Taxation

Country / jurisdiction: Finland · Year: 2020 · Status: In force · Level: National · Type: Voluntary

In its Budget Review 2021, the government announced changes in taxation as part of its renewable industry strategy:

- Industrial electricity tax will be lowered to the minimum rate allowed by the EU. The industrial energy tax rebate system will be abolished over a four-year transition period, ending companies' entitlement to energy tax rebates in 2025. The existing energy subsidies will support the industry's transition to emission-free technologies during and after the transition period.

- Taxation on heating fuels, such as coal, natural gas and fuel oil, will be increased by EUR 105 million net from the beginning of 2021. A price floor mechanism will be introduced in peat taxation in 2022 which, together with the emission allowance pricing, will ensure that the energy use of peat will be cut by at least half by 2030.

- A tax reform concerning employment-related transport benefits will be implemented at the start of 2021 to support the transition to low-emission transport. The taxable value of fully electric vehicles used as company cars will be lowered and the charging benefits of electric vehicles at workplaces and in public charging points will be made a tax-free benefit in 2021–2025. In addition, the taxation of employer-subsidised commuter tickets will be simplified and company bicycles will be made a tax-free benefit.

Official source: https://valtioneuvosto.fi/documents/10616/37498572/Uusiutuvan+teollisuuden+strategia.pdf/d07633e0-c028-1076-f1ef-c4691acf4da3/Uusiutuvan+teollisuuden+strategia.pdf/Uusiutuvan+teollisuuden+strategia.pdf?t=16002586ropose02904