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International comparison:
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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
For general information on CSO statistics:
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, , 11am

Environment Taxes

2014

    €million
Tax type20102011201220132014
Energy2,5082,6942,6212,7042,798
Transport1,5221,4491,4721,6291,742
Pollution and Resource6261666457
Total4,0924,2044,1594,3974,597
% of total taxes     
9.1%9.1%8.7%8.8%8.4%

Environment taxes reach €4.6 billion in 2014

Environment Taxes by Type
go to full release

€4.6 billion of environment related taxes were collected in 2014, an increase of 4.5% on 2013 but still 4.7% below their highest level of €4.8 billion in 2007. Energy taxes (mainly taxes on transport fuels) accounted for 61% of total environment taxes in 2014 with another 38% coming from Transport taxes (including motor tax and vehicle registration tax VRT).

Table 1 shows that environment taxes increased from €3.0 billion in 2000 to €4.8 billion in 2007 before falling to €3.8 billion 2009. Taxes have since increased to €4.6 billion in 2014. As a percentage of total taxes environment taxes decreased from 9.0% in 2000 to a low of 7.7% in 2006. This percentage share reached a high of 9.1% in 2010 before falling to 8.4% in 2014.

Energy taxes increased from €1.5 billion in 2000 to €2.8 billion in 2014. The share of energy tax as a percentage of total environment taxes has also increased from 50.1% in 2000 to 60.1% in 2014 with combined Carbon tax and the Public Service Obligation levy accounting for 23% of energy taxes in 2014.

In 2000 Transport taxes (mainly vehicle registration and motor taxes) were €1.5 billion with vehicle registration accounting for 66%. Transport taxes reached a high of €2.5 billion in 2007 before falling to €1.45 billion in 2011 and then rising to €1.74 billion in 2014. 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 €1 million in 2000 to €66 million in 2012 before falling back to €57 million in 2014. The increase in 2002 and 2003 is due to the introduction of two new taxes in 2002, a plastic bag levy and a landfill levy. The plastic bag levy raised €12 million in 2002. The landfill levy increased from €8 million in 2002 to high of €51 million in 2012 before dropping to €41 million in 2014.

 

 NACE Rev. 2 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 2000 estimated environment taxes levied on households were €1.9 billion, representing a 63% share of total environment taxes. Household environment taxes reached €3.3 billion in 2007 before falling to €2.5 billion 2009. In 2014 household environment taxes were €2.9 billion and represented a 63% share of total environment taxes.

Environment taxes levied on Service industries were €0.8 billion in 2000, representing a 26% share of total environment taxes. In 2014 environment taxes paid by Service industries reached €1.3 billion, their highest level and represented a 29% share of total environment taxes. The upward movement in the percentage share in 2014 being largely attributable to increases in Carbon tax and the Public Service Obligation levy.

Environment taxes levied on Industry increased from €0.28 billion in 2000 to a high of €0.34 billion in 2004 before falling back to €0.27 billion in 2012. In 2014 environment taxes levied on Industry were €0.32 billion. In 2000 the percentage share of total environment taxes levied on industry was 9% while in 2014 it has fallen to 7%.

Environment taxes levied on the Agriculture sector were €0.04 billion in 2000, representing a 1.3% share of total environment taxes. In 2014 environment taxes levied on the Agriculture sector were €0.07 billion and represented a 1.5% share of total environment taxes.

 

 

 

 

AgricultureIndustryServicesHouseholds
2000382787811878
2001362677011775
2002332898461915
2003292658842122
20043534310432412
20053233411502704
20064332211382968
20073928812113284
20082833611472803
20093030010092506
20103930110252728
20115830210792765
20125727410722756
20136329312002842
20146831513272887
Table 1 Environment Tax by Tax type
€million
Tax200020012002200320042005200620072008200920102011201220132014
Total 2,9742,7803,0833,3003,8334,2204,4714,8224,3143,8454,0924,2044,1594,3974,597
Annual % change10.9%-6.5%10.9%7.0%16.1%10.1%6.0%7.9%-10.5%-10.9%6.4%2.7%-1.1%5.7%4.5%
% of total taxes9.0%8.0%8.2%7.9%8.3%8.4%7.7%8.0%8.0%8.3%9.1%9.1%8.7%8.8%8.4%
                
Energy taxes1,4911,4361,6741,7632,0842,2122,2322,2502,2502,2652,5082,6942,6212,7042,798
Duty on light hydrocarbon oil products7537448628719791,0171,0311,0511,0461,064993991911854798
Duty on other hydrocarbon oil products7396607798599961,0561,1201,1531,1221,1061,1061,1281,1241,1821,239
Electricity tax000000000277766
National Oil Reserves Agency levy0313333353637478193140130123123123
Carbon tax0000000000223298354388390
Public Service Obligation levy0000751034400039140102151242
                
Transport taxes1,4821,3431,3881,4941,7081,9612,1862,5162,0031,5231,5221,4491,4721,6291,742
Vehicle registration tax9857878028099561,1531,3011,554938373395394384459572
Air travel tax0000000009210344343411
Motor tax (business)124137145170187201220239265264256253264284290
Motor tax (households)372410436510560602660718795793768758791853869
Vehicle & driving licence expenses195555555000000
                
Pollution and Resource taxes1121434047535662576261666457
Plastic bag levy0012242326282929232016141515
Landfill levy008181720232631324144514841
Fisheries protection111111112111111
                
Table 2 Environment Taxes by NACE Sector of Payee
€million
NACE Rev. 2200020012002200320042005200620072008200920102011201220132014
Total environment taxes 2,9742,7803,0833,3003,8334,2204,4714,8224,3143,8454,0924,2044,1594,3974,597
                
Agriculture, forestry and fishing (01-03)383633293532433928303958576368
                
Industry (05-43)278267289265343334322288291300301302274293315
Mining and quarrying (05-09)38222119252117141612914111317
Food, beverages and tobacco (10-12)433843414532322234304037323235
Textiles and pharmaceuticals (13-21)141314142221181486813121622
Plastic and non-metallic minerals (22-23)161718222625221516151718151515
Metals, machinery and equipment (24-33)7868746486807882107117108139133147159
Electricity and gas (35)1320201619201934365544
Water and Waste (36-39)46791515152017342221161414
Construction (41-43)7183927810512012011789819156505050
                
Services (45-96)7817018468841,0431,1501,1381,2031,1471,0091,0251,0791,0721,2001,327
Wholesale and retail trade (45-47)156175251269349429421387316261263264272302327
Transport, postal and warehousing (49-53)469386444448467455446498501411457517520573605
Accommodation and food (55-56)403028332325173136492729232425
Information and computing (62-63)24382030415254504222202429
Rental and leasing (77)691116364258717679106888697107
Public administration (84)433643484359543724213647454850
Other (58-61, 64-66, 68-75, 78-82, 85-88, 90-96)6561646210511110212714014093112106132184
                
Households and non-residents1,8781,7751,9152,1222,4122,7042,9683,2922,8482,5062,7282,7652,7562,8422,887
                
Table 3 Energy Taxes by NACE Sector of Payee
€million
NACE Rev. 2200020012002200320042005200620072008200920102011201220132014
Total energy taxes 1,4911,4361,6741,7632,0842,2122,2322,2502,2502,2652,5082,6942,6212,7042,798
 -4.0%-3.7%16.6%5.3%18.2%6.1%0.9%0.8%-0.0%0.7%10.7%7.4%-2.7%3.2%3.5%
                
Agriculture, forestry and fishing (01-03)373632283328393524283754545964
                
Industry (05-43)139122131143208198190162142142152150126132145
Mining and quarrying (05-09)34181818232117131612913111316
Food, beverages and tobacco (10-12)282228323930301932283835303133
Textiles and pharmaceuticals (13-21)106791819151255712111521
Plastic and non-metallic minerals (22-23)121413202324211315141616141414
Metals, machinery and equipment (24-33)12661429231817109916141721
Electricity and gas (35)1219171417181633365544
Water and Waste (36-39)42359871217342221151413
Construction (41-43)273639325055667243364531262423
                
Services (45-96)6345767057578809508869108857767808778769861,101
Wholesale and retail trade (45-47)141154227250329409366324280244245238247275298
Transport, postal and warehousing (49-53)376323378397415398392435442371419486490540570
Accommodation and food (55-56)382523281717102335462528222324
Information and computing (62-63)1322565884264712
Rental and leasing (77)222713815212084781116
Public administration (84)373137413752452818183338363840
Other (58-61, 64-66, 68-75, 78-82, 85-88, 90-96)3937363364615271828552736790141
                
Households and non-residents6817028068359631,0361,1171,1431,1991,3201,5391,6131,5651,5281,488
                
Table 4 Transport Taxes by NACE Sector of Payee
€million
NACE Rev. 2200020012002200320042005200620072008200920102011201220132014
Total transport taxes 1,4821,3431,3881,4941,7081,9612,1862,5162,0031,5231,5221,4491,4721,6291,742
 18.6%-9.4%3.4%7.7%14.3%14.8%11.5%15.1%-20.4%-24.0%-0.0%-4.8%1.6%10.7%6.9%
               
Agriculture, forestry and fishing (01-03)111123444123333
                
Industry (05-43)139145152112125127122118140151142144139153163
Mining and quarrying (05-09)543210110000000
Food, beverages and tobacco (10-12)141715751110111000
Textiles and pharmaceuticals (13-21)377532222111111
Plastic and non-metallic minerals (22-23)435321111000000
Metals, machinery and equipment (24-33)67636749565660649510898119115127135
Electricity and gas (35)112222200000000
Water and Waste (36-39)133456660000000
Construction (41-43)444750415059514342424222212325
                
Services (45-96)146126138120156191239275253223233193186205218
Wholesale and retail trade (45-47)152023181918515833161724242628
Transport, postal and warehousing (49-53)936466505156526257383630293233
Accommodation and food (55-56)355556551220011
Information and computing (62-63)11161423354346464015141617
Rental and leasing (77)489922344250547010080778590
Public administration (84)65655677632991010
Other (58-61, 64-66, 68-75, 78-82, 85-88, 90-96)262428283947465156493435343739
                
Households and non-residents1,1961,0721,0971,2611,4251,6401,8212,1181,6061,1471,1461,1091,1441,2691,358
                
Table 5 Pollution and Resource Taxes by NACE Sector of Payee
€million
NACE Rev. 2200020012002200320042005200620072008200920102011201220132014
Total pollution and resource taxes 1121434047535662576261666457
 -2.0%1723.3%103.2%-6.5%15.9%13.2%6.5%9.9%-8.0%9.2%-1.5%8.3%-4.0%-10.3%
                
Agriculture, forestry and fishing (01-03)000000000000110
                
Industry (05-43)00610910989779997
Mining and quarrying (05-09)000000000000000
Food, beverages and tobacco (10-12)000111112111111
Textiles and pharmaceuticals (13-21)000111111100000
Plastic and non-metallic minerals (22-23)000000001101111
Metals, machinery and equipment (24-33)000111111113443
Electricity and gas (35)001110110000000
Water and Waste (36-39)000111220100000
Construction (41-43)003655323343332
                
Services (45-96)00377913188101291098
Wholesale and retail trade (45-47)001222353111111
Transport, postal and warehousing (49-53)000000111111111
Accommodation and food (55-56)000111231110000
Information and computing (62-63)000001110001111
Rental and leasing (77)000000011121221
Public administration (84)001211120000000
Other (58-61, 64-66, 68-75, 78-82, 85-88, 90-96)001223452674544
                
Households and non-residents1113262427303144394343474541
                

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 products, 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 (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 currently 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 2000, 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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