According to the Polish Liquefied Gas Organization (POGP), the energy tax, i.e. the ETD directive, is coming back like a boomerang. The lowest minimum excise duty rates would apply to electricity, advanced fuels and e-fuels, while biomass (firewood) and municipal waste as fuel would be excluded from the scope of the ETD. The assumption is that low-emission fuels are to be promoted.
The Belgian Presidency of the Council of the European Union has proposed a return to negotiations on the amendment of the Energy Taxation Directive (ETD), initially presented in 2021.
The ETD Directive, as a legal act regulating tax policy, requires the unanimous consent of all Member States, and the European Parliament – traditionally the most radical of the European institutions – has only an advisory role in accordance with the Treaty on the Functioning of the European Union. Therefore, the adoption of the transformed ETD directive in the context of the recent energy crisis is questionable – emphasize POGP experts.
In 2021, the Polish Liquefied Gas Organization (POGP) presented its position on the original draft of the ETD directive. The main intention of the project is to establish minimum excise tax rates for all fuels in relation to the energy value expressed in GJ. The assumption is that low-emission fuels are to be promoted.
What energy carriers will be taxed?
According to unofficial information, the Belgian Presidency has adopted a fundamentally different approach to the taxation of carriers than the Commission, dividing all fuels essentially into 3 categories:
- bathroom,
- renewable,
- advanced fuels and e-fuels.
As POGP experts note, in the first two cases, the taxation of transport fuels would be significantly higher than that of heating fuels.
The lowest minimum excise duty rates would apply to electricity, advanced fuels and e-fuels, while biomass (firewood) and municipal waste used as fuel would be excluded from the scope of the directive.
The minimum rate for autogas would be slightly higher than currently, at the level of EUR 5.38/GJ.
What fuels should be exempt from ETD tax?
The Belgian Presidency proposes a catalog of derogations and exemptions that may be applied by Member States, including:
- for heating fuels and electricity for small consumers (e.g. households),
- for advanced biofuels, including biogases and bioliquids.
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