Tax regulation mechanism (Excise duty on liquid fuels)
Updated: 07.01.2019
Author: Karl Wikberg
In Finland, fuels are taxed according to their use. Excise duty on liquid fuels is collected on all types of fuels, including biofuels. The latest amendment to the Act of Excise Duty on Liquid Fuels sets out a taxation system, according to which each component of a liquid fuel is taxed separately, based on its energy content and carbon dioxide emission, meaning reduced taxation for biofuels (§1 Act No. 1472/1994).
Eligible technologies
Subject to tax allowances are biofuels, which comply with the requirements defined in the Act on Biofuels and Bioliquids (§2 par. 27 a Act No 1472/1994, § 5 Act No. 393/2013).
Amount
The tax on petrol released for consumption is at least €ct 35.9 per litre, for diesel the amount is at least €ct 33 per litre (§4 Act no. 1472/1994). The exact excise duty rates of the different components of the liquid fuels are shown in the annexed table of the Act No. 1472/1994. For information in Finnish concerning the exact rates, please refer to the Amendment No. 972/2017 to Act No. 1472/1994: https://www.finlex.fi/fi/laki/alkup/2017/20170972 (rates as of 01 January 2018).
Addressees
The party obligated to pay the excise duty on liquid fuels is the supplier. The supplier of biofuels or fuels blended with biofuels has to pay the reduced tax (§6 Act No. 1472/1994).
Procedure
Process flow | The authorised fuels suppliers must keep account of the quantities released for consumption (§6 Act No. 1472/1994) and submit a tax return for the fiscal year by the 18th of the following month to the district customs authority (§ 31 Act No. 182/2010). |
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Competent authority | Finnish Tax Administration |
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Distribution of costs
| State | The costs of tax relief are borne by the state. |
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Finland
