Transcript Eesti maksusüsteemist inglise keeles

USE OF ECONOMIC INSTRUMENTS FOR
PROMOTING SUSTAINABLE
DEVELOPMENT
Veiko Tali, Deputy Secretary General, Ministry of Finance
11th of April 2006
Ministry of Finance of Estonia
SUSTAINABLE DEVELOPMENT IN ESTONIA
Part of economic growth in our country is achieved through policies
that allow and sometimes even encourage businesses and people not to
think and act in a sustainable way.
We are in the very beginning of a road which leads to sustainability.
Our energy sector bears the main responsibility for pollution and using
natural resources. In 2003 the energy sector was responsible for using
93% of all the water used in Estonia, emitted into air 92% of all the
pollutants and 73% of all the waste. Those numbers indicate clearly the
environmental burden caused by the energy sector.
Ministry of Finance of Estonia
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SUSTAINABLE DEVELOPMENT IN ESTONIA
At the same time the percentage of renewable energy sources in
electricity production is still marginal (above 1%).
The non-sustainable policy has not helped us to solve the most
important environmental problems. Estonian CO2 emission per capita
is 11,3 tons in a year which is about 1,5 times higher than the ‘EU
average’ respective figure.
“Cheap electricity” has caused the low effectiveness of energy use (the
amount of GDP produced when burning one tonne of fuel). According
to Estonian Human Development Report the Estonian economy is 4
times less effective than in Finland, lagging ten times behind Japan or
Denmark.
Ministry of Finance of Estonia
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ENVIRONMENTAL BURDEN OF ELECTRICTY PRODUCTION:
ASH HILLS IN EASTERN PART OF ESTONIA
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ECOLOGICAL TAX REFORM AS A TOOL TO ACHIEVE
SUSTAINABILITY
In spring 2005 a broad-base working group was
established for working out the principles of the tax reform
which were presented to the government.
The concept was discussed and in principle approved at
government cabinet meeting held on 7th of July 2005.
Ministry of Finance of Estonia
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TAX
ENVIRONMENTAL
POLICY
POLICY
TAX SYSTEM – for what ?
I FISCAL ASPECT - REVENUE
II POSITIVE
AFFECT ON
BEHAVIOUR
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KEY PRINCIPLES OF THE ETR CONCEPT
A partial re-orientation of taxes from taxation of income to
taxation the use of natural resources and pollution of
nature. The broader goal of the tax reform concept is to
improve the competitiveness of Estonia, support the
economic development and reduce unemployment.
Another basic principle is that the overall tax burden has to
remain the same – this means that the rise of
environmental taxes and fees has to be balanced with
decreasing of income tax.
Ministry of Finance of Estonia
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INCOME TAX (1)
Income tax rate 1994 - 26 % (flat rate)
2005 – 24%
2006 – 23%,
2007 – 22 %
2008 - 21 %
2009 - 20%
Corporate income tax /1999/ only on outpayments
(dividends) (0 % rate on retained earnings)
Ministry of Finance of Estonia
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INCOME TAX (2)
Increase of non-taxable income :
 2004 - 16 800 EEK in a year (1074 EUR in a year)
 2005 – 20 400 EEK in a year (1304 EUR in a year)
 2006 – 24 000 EEK in a year (1534 EUR in a year)
Ministry of Finance of Estonia
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SOCIAL TAX
• Tax rate is 33 per cent of the taxable amount
• Tax accrues single-purposely to the budgets of
 state health insurance system (13%)
 state pension insurance system (20%)
• Social tax payable is personificated and in making pension
payments will be taken into account.
Ministry of Finance of Estonia
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WE TAX MORE CONSUMPTION AND LESS EARNINGS
33,3%
- 640 mln
% GDP
40
30
12,7 12,3
12,7 13,4 11,9 11,3
12,0 11,7 12,2
12,4 12,4 13,6
13,4 13,2 13,1
20
10
23,7 23,0
21,2 21,5 22,1 21,5 19,6
19,0 19,6 20,9 20,5 19,3 18,3 17,6 17,8
0
1994
1996
1998
Direct taxes
2000
2002
2004
2006*
2008*
Indirect taxes
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PROBLEMS OF ETR
1) Administration
2) Competitiviness
3) Impact to wealth distribution
4) Measurement (indicators)
5) POLITICAL FLUCTUATIONS
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TIMELINE OF ETR CONCEPT
YEARS 2005-2006
+ ENVIRONMENTAL FEES ACT, July 2005
- EXCISES OF ENERGY PRODUCTS, II half-year 2006
- TRANSPORT TAXES (ANNUAL CAR TAX), 2006
2005 – 2008: IMPLEMENTATION OF ETR I PHASE
2006-2008: EVALUATION OF ETR I PHASE AND PLANNING OF
ETR SECOND PHASE
2009-2013: IMPLEMENTATION OF ETR II PHASE
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ENVIRONMENTALLY RELATED TAXES IN ESTONIA
1. ENERGY TAXES – excise duty on energy products, CO2 emissions
charge on production of electricity;
2. TRANSPORT TAXES - heavy vehicle tax, state fee for registration
of cars;
3. ENVIRONMENTAL FEES - most important of them are pollution
charges, water abstraction charge, mineral extraction charges,
packaging excise duty and etc.
The main revenue from environmental taxes and fees comes from fuel
excise duty (over 80%). Overall the environmentally related taxes and
fees constitute about 2,2 % of GDP.
On the next slide there’s a graph about environmental tax revenues by
Member State and type of tax in % of GDP (2004).
Ministry of Finance of Estonia
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5,0
4,5
4,0
3,5
3,0
2,5
2,0
1,5
1,0
0,5
0,0
DK
CY
NL
SI
LU
FI
MT
PT*
SE
IT
HU** CZ
Energy
AT
UK
Transport
LV
DE
IE
BE
EL
PL
Pollution/Resources
Rahandusministeerium
EE
FR
ES
LT
EU- EU- NM
25 15 S-10
THE REVENUE FROM ENVIRONMENTALLY RELATED
TAXES
The graph showed that in Estonia the revenue from environmentally
related taxes and fees is comparatively smaller than on an average in
the EU countries. In 2004, revenues from environmental taxes in the
EU-25 (in the GDP-weighted average) accounted for 2.6% of GDP.
Ministry of Finance of Estonia
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INCREASE OF ENVIRONMENTAL FEES
The new Environmental Fees Act which entered into force on 1
January 2006 contributes to environmental protection much more
efficiently.
For exmaple the CO2 emissions charge will rise to 31,3 EEK per tonne
for year 2008 (2005 - 11,3 / 2006 – 15,6 / 2007 – 23,5).
The charge for taking hazardous waste to environment will rise from
122 EEK per tonne (year 2006) to 157 EEK per tonne for year 2009.
The mineral extraction charge for oil shale will rise from 5,2 EEK per
tonne (year 2005) to 12 EEK per tonne for year 2009.
On average the water abstraction charge will rise 10% in a year up to
year 2013.
Ministry of Finance of Estonia
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ENERGY PRODUCTS: NATIONAL EXCISE DUTY RATES APPLICABLE TO
MOTOR FUELS AND THE EU MINIMUM EXCISE LEVELS.
ENERGY
Excise rates in Estonia
The EU minimum levels of
PRODUCT
01.01.2006
taxation
Estonia
may apply
a
transitional
period on
petrol and
gas oil
until 2010
to achieve
the EU
minimum
level of
taxation.
Unleaded
petrol
287 EUR (4500 EEK )/
1000 l.
359 EUR (5620 EEK)/
1000 l.
Aviation
petrol
72 EUR (1120 EEK)/
1000 l.
Gas oil
245 EUR (3840 EEK)/
1000 l.
4730 EEK (302 EUR)
(from 2010 330 EUR 1000 l
44 EUR (690 EEK)/
1000 l.
21 EUR (330 EEK)/
1000 l.
LPG
100 EUR (1570 EEK)/
1000 kg
125 EUR (1960 EEK)/1000
kg
Petroleum
302 EUR (4730 EEK)/
1000 l
302 EUR (4730 EEK)/
1000 l.
Gas oil for
specific
purposes
FUTURE DEVELOPMENTS – MOTOR FUELS
According to initial plan the excise duty rate of UNLEADED
PETROL will be raised from 287 to 359 EUR gradually (three
steps: 2008-2009-2010).
According to initial plan the excise duty rate of DIESEL will be
raised from 245 to 330 EUR gradually (three steps: 2008-20092010).
* - according to ROADS ACT the total amount of expenditure
prescribed by the state budget for the financing of road
management shall be equal to not less than 75 per cent of the
proceeds planned from fuel excise duty (except fuel marked with a
fiscal marker) and 25 per cent of the proceeds planned from excise
duty on fuel marked with a fiscal marker.
EXEMPTION OF BIOFUELS
•
The permission which allows Estonia to exempt biofuels from excise duty
was issued by the European Commission on 27th of July 2005. It’s valid
for six years. The following biofuels only are exempted from fuel excise
duty:
1. fuel for which the first four digits of the CN code are 1507–1518 and that
are not of synthetic origin (the raw material of biodiesel);
2. fuel which is produced from biomass and for which the eight digits of the
CN code are 3824 90 55 or 3824 90 80–3824 90 99 (the raw material of
biodiesel);
3. fuel which is produced from agricultural products or from products of
vegetal origin and for which the eight digits of the CN code are 2207 20 00
(denatured ethyl alcohol) or 2905 11 00 (methyl alcohol).
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HEATING FUELS AND ELECTRICITY
Transitional
period until
2013 (201150%) on
taxation of
oil shale.
Energy
product
Transitional
period until
2010 on
taxation of
shale oil and
electricity.
Excise rates in
Estonia
01.01.2006
The EU minimum levels of taxation
business
non-business
Light
fuel oil
44 EUR
1000 l.
21 EUR/1000 l.
= 330 EEK
21 EUR/1000 l.
= 330 EEK
Heavy
fuel oil
15 EUR 1000
kg
15 EUR/1000 kg
= 235 EEK
15 EUR/1000 kg
= 235 EEK
Petroleum
302 EUR 1000
l.
-
-
Natural
gas
-
0.15 EUR/ 2.35 EEK
GJ
0.3 EUR/ 4.7 EEK
GJ
Coal
and coke
0.3 EUR GJ
0.15 EUR/ 2.35 EEK
GJ
0.3 EUR/ 4.7 EEK
GJ
Electricity
-
0.5 EUR/ MWh
= 7.8 EEK
1 EUR/ MWh
= 15.65 EEK
FUTURE DEVELOPMENTS – HEATING FUELS
NATURAL GAS - according to Energy Taxation Directive Estonia
does not tax natural gas because the proportion of natural gas in total
energy consumption was lower than 15% in year 2001.
From environmental point of view and considering the security of
supply (all the gas is imported from Russia) there is no reason why
natural gas should not be taxed. We have initial plans to tax natural
gas together with shale oil from 2008.
According to excise duty act SHALE OIL is exempted from excise
duty if used by households or for district heating purposes. At least
from 1st of January 2010 we must tax shale oil used for district
heating purposes.
FUTURE DEVELOPMENTS - ELECTRICITY
At present there are no excise duties on electricity consumption.
In the price of electricity to the end consumer the proportion of all the
environmental fees and charges is about 3% which is about 3 times
higher than the EU minimum excise tax rate on electricity.
As the exported electricity could not be taxed with excise and imported
electricity could not be taxed with environmental charges in the future
we will probably use a combination of them.
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Thank you!
Ministry of Finance of Estonia
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