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For more information on this release:
E-mail: environment@cso.ie Berna Lawlor (+353) 1 4984210 Gerard Keogh (+353) 1 4984320
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information@cso.ie (+353) 21 453 5000 Visit StatCentral.ie, the portal to Ireland's official statistics On-line ISSN 2009-7956
CSO statistical release, 05 July 2016, 11am

Environment Taxes

2015

€ million
Tax Type20112012201320142015
Energy2,6942,6212,7042,8042,995
Transport1,4491,4721,6621,7771,868
Pollution and Resource6166645745
Total4,2044,1594,4304,6384,908
      
% of total taxes8.7%8.4%8.6%8.2%8.0%

Environment taxes reach €4.9 billion in 2015

Environment Taxes 2015 Headline Graph

€4.9 billion of environment related taxes were collected in 2015, an increase of 5.8% on 2014 and exceeding the previous highest level of €4.8 billion reached in 2007. Energy taxes (mainly taxes on transport fuels) accounted for 61% of total environment taxes in 2015 with another 38% coming from Transport taxes (including motor tax and vehicle registration tax).

 

Table 1 shows that environment taxes increased from €4.5 billion in 2006 to €4.8 billion in 2007 before falling to €3.8 billion in 2009. Taxes have since increased to €4.9 billion in 2015. As a percentage of total taxes environment taxes increased from 7.7% in 2006 to a high of 8.8% in 2010.  In 2015 the percentage share stands at 8%.

Energy taxes increased from €2.2 billion in 2006 to €3.0 billion in 2015. Energy taxes as a percentage of total environment taxes increased from 49.9% in 2006 to 61.0% in 2015 with combined Carbon tax and the Public Service Obligation levy accounting for 25% of energy taxes in 2015.

In 2006 Transport taxes (mainly vehicle registration and motor taxes) were €2.2 billion with vehicle registration accounting for 59.5%. Transport taxes reached a high of €2.5 billion in 2007 before falling to €1.45 billion in 2011 and then rising to €1.87 billion in 2015. A combination of a large drop in vehicle sales coupled with the change to an emissions basis for vehicle registration tax in 2008 explains the drop of 40% in transport taxes between 2007 and 2009.

Pollution and resource taxes increased from €53 million in 2006 to €66 million in 2012 before falling back to €45 million in 2015. The plastic bag and landfill levies were combined prior to 2009, together they increased from €52 million in 2006 to high of €65 million in 2012 before dropping to €44 million in 2015.

NACE Sector Analysis

Overall environment taxes which include newer categories of tax such as Carbon taxes and the Public Service Obligation levy, as well as more traditional categories of taxes such as fuel, motor and vehicle registration tax among others are reported in the National Tax List compiled for National Accounts. In this release environment taxes are also compiled and presented according to the NACE Rev. 2 sector of the tax payer - NACE Rev. 2 is the EU’s statistical classification of economic activity. The method used to compile the NACE Rev. 2 Sector Analysis of environment taxes depends on whether tax relief is available in that sector and on the particular environment tax which is then allocated to NACE Rev. 2 sector using Personal Consumption Expenditure, Supply-Use tables, CO2 emission data and other statistical sources.

Table 2 shows environment taxes by NACE Rev. 2 sector of Payee. In 2006 estimated environment taxes levied on households were €2.9 billion, representing a 66% share of total environment taxes. Household environment taxes reached their highest level €3.3 billion in 2007 before falling to €2.5 billion in 2009. In 2015 household environment taxes were €3.1 billion and represented a 62% share of total environment taxes.

Environment taxes levied on Service industries were €1.1 billion in 2006, representing a 25% share of total environment taxes. In 2015 environment taxes paid by Service industries reached €1.3 billion, their highest level and represented a 27% share of total environment taxes. The recent gradual upward movement in the percentage share in the years to 2015 being largely attributable to increases in Carbon tax and the Public Service Obligation levy.

Environment taxes levied on Industry were €0.38 billion in 2006, falling back to €0.31 billion in 2010. In 2015 environment taxes levied on Industry were €0.46 billion. In 2006 the percentage share of total environment taxes levied on industry was 8.5% while in 2015 it stands at 9.3%.

Environment taxes levied on the Agriculture sector were €0.32 billion in 2006, representing a 0.7% share of total environment taxes. In 2015 environment taxes levied on the Agriculture sector were €0.08 billion and represented a 1.6% share of total environment taxes.

Environment taxes 2015 show revisions when compared with corresponding figures in the 2014 Environment Taxes Release. These revisions mainly effect the Energy sector and years 2013 and 2014, they arise due to the incorporation of the 2013 Supply and Use Table as well as revised CO2 emission data being made available from the Environmental Protection Agency.  

 

 

X-axis labelAgricultureIndustryServicesHouseholds
20000.0230.2970.7771.878
20010.0214086228840.2939591068610.6891973215571.774949565913
20020.022893951960.3327807062730.8224103958971.904732913439
20030.0240807591210.3099869055130.8665860498082.099302889057
20040.029746855650.3728219925511.0392935704622.390692359497
20050.0335400993030.3890307368161.1181364447382.679007307697
20060.0318846160480.3802752548371.1165503752432.94243523271
20070.0266427822290.356435711221.173321446813.266070171821
20080.0244897946820.3727349620661.0817389975252.83518139631
20090.0244590179290.3251668753640.9893305934412.505997647316
20100.0345497990490.3091593440081.0243539101052.724411986057
20110.0525677166850.3280064192621.0585566009562.764817835793
20120.0515829136020.3346477683421.01415980882.75855945162
20130.0594586679510.3724271992671.0943393270192.903196144248
20140.06665714856490.4123423224768261.179595422126462.97933151671782
20150.07741368519558730.4564602559046811.312127317238043.06209405444169
Table 1 Environment Tax by Tax type 2006-2015
€ million
Tax2006200720082009201020112012201320142015
Total 4,4714,8224,3143,8454,0934,2044,1594,4304,6384,908
Annual % change6.0%7.8%-10.5%-10.9%6.4%2.7%-1.1%6.5%4.7%5.8%
% of total taxes7.7%7.9%7.9%8.1%8.8%8.7%8.4%8.6%8.2%8.0%
           
Energy taxes2,2322,2502,2502,2652,5082,6942,6212,7042,8042,995
Duty on light hydrocarbon oil products1,0311,0511,0461,064993991911854810771
Duty on other hydrocarbon oil products1,1201,1531,1221,1061,1061,1281,1241,1821,2341,350
Electricity tax0002777665
National Oil Reserves Agency levy37478193140130123123123124
Carbon tax0000223298354388390418
Public Service Obligation levy4400039140102151242328
           
Transport taxes2,1862,5162,0031,5231,5221,4491,4721,6621,7771,868
Vehicle registration tax1,3011,554938373395394384459572702
Air travel tax00092103443434110
National Car Test (NCT) Levy0000000192122
Motor tax (business)220239265264256253264284290281
Motor tax (households)660718795787761749781853869849
Vehicle and driving licence expenses55567910131313
           
Pollution and Resource taxes53566257626166645745
Plastic bag levy00023201614151516
Landfill levy52556032414451484128
Fisheries protection1112111111
           
Table 2 Environment Taxes by NACE Sector of Payee 2006-2015
€ million
NACE Rev. 22006200720082009201020112012201320142015
Total environment taxes 4,4714,8224,3143,8454,0934,2044,1594,4304,6384,908
           
Agriculture, forestry and fishing (01-03)32272424355352596777
           
Industry (05-43)380356373325309328335372412456
Mining and quarrying (05-09)51464231162821242630
Food, beverages and tobacco (10-12)32363928354538485667
Textiles and pharmaceuticals (13-21)19141312121616182328
Plastic and non-metallic minerals (22-23)44423927292832374351
Metals, machinery and equipment (24-33)7982119127118143172188204215
Electricity and gas (35)20473644433
Water and Waste (36-39)131411171197677
Construction (41-43)12311910480815445485155
           
Services (45-96)1,1171,1731,0829891,0241,0591,0141,0941,1801,312
Wholesale and retail trade (45-47)252257290236204211193214233261
Transport, postal and warehousing (49-53)624639568480522567565604634694
Accommodation and food (55-56)1531530252624272729
Information and computing (62-63)41495048432118212634
Rental and leasing (77)556565751088759606366
Public administration (84)41322623344542444852
Other (58-61, 64-66, 68-75, 78-82, 85-88, 90-96)89100789888101114125148177
           
Households and non-residents2,9423,2662,8352,5062,7242,7652,7592,9032,9793,062
           
Table 3 Energy Taxes by NACE Sector of Payee 2006-2015
€ million
NACE Rev. 22006200720082009201020112012201320142015
Total energy taxes 2,2322,2502,2502,2652,5082,6942,6212,7042,8042,995
 0.9%0.8%-0.0%0.7%10.7%7.4%-2.7%3.2%3.7%6.8%
           
Agriculture, forestry and fishing (01-03)28222123334946546171
           
Industry (05-43)238223209167161176157181209247
Mining and quarrying (05-09)50454231162821232630
Food, beverages and tobacco (10-12)28323627344336465566
Textiles and pharmaceuticals (13-21)1511911111515172227
Plastic and non-metallic minerals (22-23)43413726282731364251
Metals, machinery and equipment (24-33)18151818182018212529
Electricity and gas (35)16253644333
Water and Waste (36-39)348171196677
Construction (41-43)65735535373026283033
           
Services (45-96)8508628197567788568339019741,101
Wholesale and retail trade (45-47)194189255219185186166186203230
Transport, postal and warehousing (49-53)568575508440484535538575604663
Accommodation and food (55-56)621427222623252628
Information and computing (62-63)443225581219
Rental and leasing (77)121384567444
Public administration (84)31222121323631323539
Other (58-61, 64-66, 68-75, 78-82, 85-88, 90-96)353819434862627191119
           
Households and non-residents1,1171,1431,2011,3201,5371,6131,5851,5681,5601,576
           
Table 4 Transport Taxes by NACE Sector of Payee 2006-2015
€ million
NACE Rev. 22006200720082009201020112012201320142015
Total transport taxes 2,1862,5162,0031,5231,5221,4491,4721,6621,7771,868
 11.5%15.1%-20.4%-24.0%-0.0%-4.8%1.6%12.9%6.9%5.1%
           
Agriculture, forestry and fishing (01-03)4441235566
           
Industry (05-43)122118140151142144169185198206
Mining and quarrying (05-09)1100000000
Food, beverages and tobacco (10-12)1101110000
Textiles and pharmaceuticals (13-21)2221111111
Plastic and non-metallic minerals (22-23)1110000000
Metals, machinery and equipment (24-33)60649510898119151165177184
Electricity and gas (35)2000000000
Water and Waste (36-39)6600000000
Construction (41-43)51434242422217181920
           
Services (45-96)239275253223233193173186199207
Wholesale and retail trade (45-47)51583316172426283031
Transport, postal and warehousing (49-53)52625738363025282930
Accommodation and food (55-56)5512201111
Information and computing (62-63)35434646401513131314
Rental and leasing (77)425054701008051555961
Public administration (84)77632911121314
Other (58-61, 64-66, 68-75, 78-82, 85-88, 90-96)46515649343547505456
           
Households and non-residents1,8212,1181,6061,1471,1461,1091,1251,2851,3741,449
           
Table 5 Pollution and Resource Taxes by NACE Sector of Payee 2006-2015
€ million
NACE Rev. 22006200720082009201020112012201320142015
Total pollution and resource taxes 53566257626166645745
 13.2%6.5%9.9%-8.0%9.2%-1.5%8.3%-4.0%-10.2%-21.2%
           
Agriculture, forestry and fishing (01-03)0100001100
           
Industry (05-43)2015237699764
Mining and quarrying (05-09)0000000000
Food, beverages and tobacco (10-12)3331112111
Textiles and pharmaceuticals (13-21)1121001000
Plastic and non-metallic minerals (22-23)0011011000
Metals, machinery and equipment (24-33)2261233221
Electricity and gas (35)2220000000
Water and Waste (36-39)4421000000
Construction (41-43)7373232211
           
Services (45-96)273610101499764
Wholesale and retail trade (45-47)7921111111
Transport, postal and warehousing (49-53)3321112111
Accommodation and food (55-56)4511100000
Information and computing (62-63)2200110000
Rental and leasing (77)1221311100
Public administration (84)3300000000
Other (58-61, 64-66, 68-75, 78-82, 85-88, 90-96)81136644432
           
Households and non-residents542839424348504537
           

Background Notes

Environment taxes

Introduction 

This release contains an analysis of environment taxes by category of tax and economic sector of the payee.

Data Sources 

The starting point for the production of Environment taxes is the National Tax List (NTL) prepared by the CSO for the National Accounts and submitted to Eurostat under the ESA (European System of Accounts) transmission programme. A number of different data sources are used to allocate revenues to payee sectors. These include the Supply-Use tables and Personal Consumption Expenditure (PCE) data from the National Accounts along with specific information about individual taxes.

Revisions 

The figures will be updated on an annual basis at which point all periods may be subject to revision.

Definition 

An environment tax is defined by Regulation (EU) 691/2011 as:

“A tax whose tax base is a physical unit (or a proxy of a physical unit) of something that has a proven, specific negative impact on the environment, and which is identified in ESA as a tax.”

Once a tax base has been included in the list of environment tax bases, any tax levied on that base is considered an environment tax, irrespective of the motivation behind it. A list of Environment tax bases was agreed by Eurostat, the EU Commission, the OECD and the IEA and has been periodically revised. Table 1 contains national level data for each tax.

Categories of environment taxes

Energy taxes (including fuel for transport): This category includes taxes on energy production and energy products, including taxes on fuels for transport and stationary purposes. By definition Carbon taxes are included as an Energy tax rather than a Pollution tax, largely to aid international comparability. In Ireland’s case, taxes on transport fuels make up the bulk of energy taxes.

Transport taxes: This category includes taxes related to the ownership and use of motor vehicles. In Ireland this mainly relates to Vehicle Registration Tax (VRT) and Motor tax.

Pollution taxes: This category includes taxes levied on emissions to air and water, management of solid waste and noise. Carbon taxes are not included in this category.

Resource taxes: Included are taxes linked to the extraction or use of natural resources. Taxes on land are generally not included, nor are taxes designed to capture the resource rent from the extraction of natural resources.

Payee breakdown

Payees are classified by household and industry according to NACE Revision (Rev.) 2 classification - the European Union’s Statistical Classification of Economic Activity in the European Communities. The tax payer is considered to be the unit using the tax base (e.g. user of electricity or transport fuel) or undertaking the activity being taxed (e.g. disposing of waste). This principle (often called the "polluter pays principle") holds regardless of where the tax is collected. Taxes on transport fuels are, for efficiency reasons, collected from mineral oil tax warehouses. The tax has been allocated to the unit purchasing the fuel for use.

 For further information on the NACE Rev. 2 classification of industrial activity, visit the CSO website:

 http://www.cso.ie/en/surveysandmethodology/classifications/classificationofindustrialactivity/

  All NACE Rev.2 sectors are covered in Tables 2 to 5 using abbreviated titles as follows:

Abbreviated Titles Full Titles
Agriculture, forestry and fishing (01-03) Agriculture, forestry and fishing (01-03)
   
Industry (05-43) Industry (05-43)
Mining and quarrying (05-09) Mining and quarrying (05-09)
Food, beverages and tobacco (10-12) Food, beverages and tobacco products (10-12)
Textiles and pharmaceuticals (13-21) Textiles, wood, leather, petroleum, chemical and pharmaceutical products (13-21)
Plastic and non-metallic minerals   (22-23) Rubber, plastic and non-metallic mineral products (22-23)
Metals, machinery and equipment (24-33) Metals, computers, electronic, electrical, machinery and equipment, transport and other manufacturing, repair and installation (24-33)
Electricity and gas (35) Electricity, gas, steam and air conditioning supply (35)
Water and Waste (36-39) Water collection/treatment/supply, sewerage, waste collection, treatment, disposal, materials recovery, remediation and other waste management (36-39)
Construction (41-43) Construction (41-43)
   
Services (45-96) Services (45-96)
Wholesale and retail trade (45-47) Wholesale and retail trade including motor vehicles and their repair (45-47)
Transport, postal and warehousing (49-53) Transport, postal, courier activities including warehousing and support (49-53)
Accommodation and food (55-56) Accommodation; food and beverage service activities (55-56)
Information and computing (62-63) Computer programming, consultancy, information services activities (62-63)
Rental and leasing (77) Rental and leasing (77)
Public administration  (84) Public administration and defence; compulsory social security (84)
Other Services (58-61, 64-66, 68-75, 78-82, 85-88, 90-96) Other Services (58-61, 64-66, 68-75, 78-82, 85-88, 90-96)
 

Methodology for allocating taxes to tax payers

The method used to allocate environment taxes to tax payers varies depending on the tax in question, using Supply-Use tables (SUT) in some instances and more detailed sources where such are available.

Energy taxes

The largest component of energy taxes relates to taxes levied on fuel purchases. The overall environment taxes reported in the NTL is split according to fuel type excise data available from the Revenue Commissioners. Separately, PCE is also available for each fuel type within the National Accounts. The household component of tax revenue associated with each fuel type is estimated by combining these two sources. The residual (i.e. non-household) component of tax revenue is then allocated across all NACE Rev. 2 sectors. Transport fuels are allocated according to NACE sector analysis of CO2 emissions from the air emissions accounts while the SUT is used for non-transport fuels. Importantly, the excise data allows identification of sectors for which relief is available, e.g. aviation; sea fishing, electricity generation and these sectors are consequently excluded from the list of payees. For other non-fuel Energy taxes including the Carbon tax, Electricity tax and the National Oil Reserves Agency Levy, allocation of the respective tax to payee NACE Rev. 2 sector is also accomplished using SUT.

Transport taxes

Revenues from transport taxes are predominantly derived from two sources, Motor tax and Vehicle Registration Tax. The NTL splits motor tax into household and business components with the business portion further allocated to payee NACE Rev. 2 sector using SUT. Vehicle Registration Tax (VRT) is payable by consumers on purchase or private import of a motor vehicle. The rate of tax varies by type of vehicle and CO2 emissions rating. The SUT are used to allocate the tax revenues to tax payers with non-applicable sectors (e.g. the motor trade itself) excluded.  

Transport taxes also include an “Air travel tax” payable by all passengers travelling by air. This revenue is allocated to business and private travel using data from the CSO’s Household Travel Survey. The remaining business travel portion is then allocated using the SUT.

Pollution and Resource taxes

There are four taxes classified as Pollution or Resource taxes, namely a landfill levy, a plastic bag levy, a fisheries levy and a Petroleum Act levy. Revenue raised from the landfill levy (a “per tonne” levy on waste disposed of via landfill) is allocated using the SUT excluding not-applicable industries (e.g. intermediaries). The plastic bag levy is levied on shoppers; accordingly it is entirely allocated to households.

The fisheries levy is a very small resource tax levied on fishing. The bulk of this tax is allocated to households (arising from rod-licences) with the residual allocated to NACE 03 (fishing sector).

The NTL excludes most of the Petroleum Act levy as a “resource rent”, with the amount remaining being paid by the mining and quarrying industries.

List of environment tax bases 

The manual, "Environment taxes - a statistical guide", published by Eurostat is the relevant source for defining what tax bases are to be considered within the remit of environment taxes. All taxes levied on these bases are thereafter considered to be environment type taxes regardless of the reason why the tax was originally introduced. The 2013 update of the manual lists the following environment tax bases:

Energy taxes (including fuel for transport)

— Energy products for transport purposes

Unleaded and Leaded Petrol, Diesel and other energy products for transport purposes (e.g. LPG, natural gas, kerosene or fuel oil)

— Energy products for stationary purposes

Light fuel oil, Heavy fuel oil, Natural gas, Coal, Coke, Biofuels, Electricity consumption and production, District heat consumption and production and other energy products for stationary use

— Greenhouse gases

Carbon content of fuels and emissions of greenhouse gases (including proceeds from emission permits recorded as taxes in the national accounts)

Transport (excluding fuel for transport)

— Motor vehicles import or sale (one off taxes)

— Registration or use of motor vehicles, recurrent (e.g. yearly taxes)

— Road use (e.g. motorway taxes)

— Congestion charges and city tolls (if taxes in national accounts)

— Other means of transport (ships, airplanes, railways, etc.)

— Flights and flight tickets

— Vehicle insurance (excludes general insurance taxes) 

Pollution 

— Measured or estimated emissions to air 

Measured or estimated NOx emissions, Measured or estimated SOx emissions and other measured or estimated emissions to air (excluding CO2

— Ozone depleting substances (e.g. CFCs or halons) 

— Measured or estimated effluents to water 

Measured or estimated effluents of oxydisable matter (BOD, COD) and other measured or estimated effluents to water 

— Waste management 

Collection, treatment or disposal, and Individual products (e.g. packaging, beverage containers, batteries, tyres, lubricants) 

— Noise (e.g. aircraft take-off and landings) 

Resources 

— Water abstraction 

— Harvesting of biological resources (e.g. timber, hunted and fished species) 

— Extraction of raw materials (e.g. minerals, oil and gas) 

— Landscape changes and cutting of trees 

— Energy products for transport purposes

Table Notes 

Table 1 presents the total environment taxes from 2006, broken down by category of environment tax and individual tax type. Tables 2 to 5 present the environment tax categories broken down by economic activity of the payee.

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