Energy (Taxes and Duties) (Hansard, 10 July 1978)

§ Mr. Maurice Macmillan
asked the Chancellor of the Exchequer if he will list in the Official Report in tabular form the taxes and duties on energy in all European countries and their current rates.

§ Mr. Joel Barnett
The information is as follows:
Taxes and duties on energy fall into three categories: turnover taxes—VAT, sales tax—excise duties and other special consumption taxes; and customs duties. The tables are based on the latest available information; blank spaces indicate 395W that the information is not readily available.

1. TURNOVER TAXES ON ENERGY SOURCES

A EEC member States (VAT)

Coal Gas Electricity Petrol Derv Percentage Non-road fuel oils

Belgium … … … … 6 6 16 16 16 6

Denmark … … … … 18 18 18 18 18 18

France … … … … 17.6 17.6 17.6 17.6 17.6 17.6

Germany … … … … 12 12 12 12 12 12

Ireland … … … … Nil Nil Nil 10 10 Nil

Italy … … … … 14 6 6 12 14 14(1)

Luxembourg … … … 5 5 5 5 5 5

Netherlands … … … 18 18(2) 18 18 18 18(2)

United Kingdom … … … Nil Nil Nil 12.5 8 Nil

B. Non-EEC Countries in Europe

Coal Gas Electricity Petrol Derv Percentage Non-road fuel oils

Austria VAT) … … … 8 8 8 18 18 8

Finland (VAT) … … … 12.4 Nil Nil 12.4 12.4 12.4

Greece (Turnover Tax) … … — 6 6 Nil Nil —

Norway (VAT) … … … 20 20 20 20 20 20

Portugal (VAT) … … … Nil Nil Nil Nil Nil Nil

Spain (Turnover Tax) … … — — — Nil Nil —

Sweden (VAT) … … … Nil Nil Nil 20.63 Nil Nil

Switzerland (Sales Tax) … … Nil Nil Nil 5.6(3) 5.6(3) Nil (3)

VAT is not generally borne on industrial consumption because of the input tax deduction mechanism

Notes on Table 1:

(1) Italy: 6 per cent. for agriculture and inshore fishing.

(2) Netherlands: 4 per cent. for gas and oils used to provide heating in market gardening.

(3) Switzerland: the exemption for non-road fuels applies to heating oils only. The 5.6 per cent. rate of sales tax given is for the retail stage. Wholesale rate = 8.4 per cent.

2. EXCISE DUTIES AND SPECIAL CONSUMPTION TAXES ON ENERGY SOURCES

Duty is also charged on road fuels at the following rates—at current rates of exchange:

A. EEC member States

Pence per litre

Petrol Derv

Belgium … … … … … … 12.5 4.6

Denmark … … … … … … 12.5 0.66

France … … … … … … 14.6–15.5 7.9

Germany … … … … … … 11.4 11.0

Ireland … … … … … … 9.0 3.6

Italy … … … … … … 19.3 1.5

Luxembourg … … … … … 9.3 2.3

Netherlands … … … … … 11.6 4.5

United Kingdom … … … … … 6.6 7.7

B. Non-EEC Countries in Europe

Pence per litre

Petrol Derv

Austria … … … … … … 10.7 8.0

Finland … … … … … … See note (1)

Greece … … … … … … 11.9–14.3 1.0

Norway … … … … … … See note (2)

Portugal … … … … … … See note (3)

Spain … … … … … … 3.9–4.3 (see note (4)) 1.9

Sweden … … … … … … 12.8 0.5 (see note (5))

Switzerland … … … … … — —

Notes on Table 2:

(1) Finland: The tax on liquid fuels amounts to 95 per cent. of the import duty plus 9.1 pence per litre for petrol and 4.3 for derv.

(2) Norway: A State tax is levied on mineral oil at 1 Øre (less than ½p) per litre plus further increments according to the amount of sulphur in the oil. Gas oil is also liable to a special tax per kilometre according to the weight of the vehicle.

(3) Portugal: Petrol is subject to a national recovery tax, a differential charge for the supply fund and the tourist fund (fixed quarterly) and a charge to bring revenue into the supply fund. Gas oil is liable to a differential charge for the supply fund and a compensation tax charged according to vehicle capacity or weight or cylinder capacity.

(4) Spain: There is also a luxury tax on high octane petrol. Rate not readily available.

(5) Sweden: There is also a kilometre tax on gas oil charged according to the distance driven and the weight of the vehicle.

396W 397W
Most countries in Europe also impose duties on other hydrocarbon oils but a meaningful tabulation is not possible because of the complex structures of rates and of the different classifications used in the various countries; there are also numerous duty reliefs, and in certain cases surcharges or levies, depending on the use to which the oils are put.
The Netherlands and Sweden make an additional levy on all fuels for antipollution purposes.
The supply of electricity is taxed in Denmark at 2p per KwH, in Italy at up to 25p per KwH, and in Finland and Norway at rates which are not readily available.
3. IMPORT DUTIES ON ENERGY SOURCES
There are no import duties on the products below as between Member States of the EEC. For goods imported from third countries the full rates of duty are as follows:

Percentage

Coal Free

Petrol 6

Dery 3.5

LPG (1.5 per cent. if less than 99 per cent. pure) 17.5

Gas oil 3.5

Fuel oil 3.5

Kerosene 6

INTEREST PAYMENTS ON PUBLIC SECTOR DEBT HELD OUTSIDE THE PUBLIC SECTOR

As a proportion of

In value terms GDP at market prices GNP at market prices

(£ million) (Per cent.) (Per cent.)

Net payments^* Total payments Net payments^* Total payments Net payments^* Total payments

1965–66 … … 1,229 1,470 3.4 4.1 3.4 4.0

1966–67 … … 1,327 1,592 3.4 4.1 3.4 4.1

1967–68 … … 1,556 1,811 3.8 4.4 3.8 4.4

1968–69 … … 1,663 1,941 3.8 4.4 3.7 4.4

1969–70 … … 1,759 2,066 3.7 4.4 3.7 4.3

1970–71 … … 1,778 2,129 3.4 4.1 3.4 4.0

1971–72 … … 1,879 2,298 3.2 3.9 3.2 3.9

1972–73 … … 1,994 2,485 3.0 3.3 3.0 3.7

1973–74 … … 2,529 3,284 3.5 4.5 3.4 4.4

1974–75 … … 3,320 4,182 3.8 4.8 3.8 4.7

1975–76 … … 4,056 5,091 3.7 4.7 3.7 4.6

1976–77 … … 5,210 6,443 4.1 5.1 4.1 5.1

1977–78 … … 5,876 7,376 4.1 5.1 4.1 5.1

^* Interest payments on public sector debt held outside the public sector less public sector receipts of interest and dividends from outside the public sector.

Source: National accounts.

§ Mr. Lawson
asked the Chancellor of the Exchequer if he will up-date tables 1 and 2 of the article "Public Sector Debt" published in Economic Trends in May 1977 to provide data for 1977 and 1978.

§ Mr. Joel Barnett
A later version of table 1 was published as Supplementary
398W
There are also various EEC preference agreements according preferential rates to imports from certain countries. As an example, products in the above categories imported from Saudi Arabia are accorded free admission under the generalised system of preferences.
Non-EEC countries in Europe also charge protective duties on these products. Details are not readily available but they are thought to be fairly low.

1. TURNOVER TAXES ON ENERGY SOURCES
A EEC member States (VAT)
	Coal	Gas	Electricity	Petrol	Derv	Percentage Non-road fuel oils
Belgium	…	…	…	…	6	6	16	16	16	6
Denmark	…	…	…	…	18	18	18	18	18	18
France	…	…	…	…	17.6	17.6	17.6	17.6	17.6	17.6
Germany	…	…	…	…	12	12	12	12	12	12
Ireland	…	…	…	…	Nil	Nil	Nil	10	10	Nil
Italy	…	…	…	…	14	6	6	12	14	14(1)
Luxembourg	…	…	…	5	5	5	5	5	5
Netherlands	…	…	…	18	18(2)	18	18	18	18(2)
United Kingdom	…	…	…	Nil	Nil	Nil	12.5	8	Nil

B. Non-EEC Countries in Europe
	Coal	Gas	Electricity	Petrol	Derv	Percentage Non-road fuel oils
Austria VAT)	…	…	…	8	8	8	18	18	8
Finland (VAT)	…	…	…	12.4	Nil	Nil	12.4	12.4	12.4
Greece (Turnover Tax)	…	…	—	6	6	Nil	Nil	—
Norway (VAT)	…	…	…	20	20	20	20	20	20
Portugal (VAT)	…	…	…	Nil	Nil	Nil	Nil	Nil	Nil
Spain (Turnover Tax)	…	…	—	—	—	Nil	Nil	—
Sweden (VAT)	…	…	…	Nil	Nil	Nil	20.63	Nil	Nil
Switzerland (Sales Tax)	…	…	Nil	Nil	Nil	5.6(3)	5.6(3)	Nil (3)
VAT is not generally borne on industrial consumption because of the input tax deduction mechanism
Notes on Table 1:
(1) Italy: 6 per cent. for agriculture and inshore fishing.
(2) Netherlands: 4 per cent. for gas and oils used to provide heating in market gardening.
(3) Switzerland: the exemption for non-road fuels applies to heating oils only. The 5.6 per cent. rate of sales tax given is for the retail stage. Wholesale rate = 8.4 per cent.

2. EXCISE DUTIES AND SPECIAL CONSUMPTION TAXES ON ENERGY SOURCES
Duty is also charged on road fuels at the following rates—at current rates of exchange:
A. EEC member States
Pence per litre
	Petrol	Derv
Belgium	…	…	…	…	…	…	12.5	4.6
Denmark	…	…	…	…	…	…	12.5	0.66
France	…	…	…	…	…	…	14.6–15.5	7.9
Germany	…	…	…	…	…	…	11.4	11.0
Ireland	…	…	…	…	…	…	9.0	3.6
Italy	…	…	…	…	…	…	19.3	1.5
Luxembourg	…	…	…	…	…	9.3	2.3
Netherlands	…	…	…	…	…	11.6	4.5
United Kingdom	…	…	…	…	…	6.6	7.7

	Percentage
Coal	Free
Petrol	6
Dery	3.5
LPG (1.5 per cent. if less than 99 per cent. pure)	17.5
Gas oil	3.5
Fuel oil	3.5
Kerosene	6

INTEREST PAYMENTS ON PUBLIC SECTOR DEBT HELD OUTSIDE THE PUBLIC SECTOR
			As a proportion of
	In value terms	GDP at market prices	GNP at market prices
	(£ million)	(Per cent.)	(Per cent.)
	Net payments^*	Total payments	Net payments^*	Total payments	Net payments^*	Total payments
1965–66	…	…	1,229	1,470	3.4	4.1	3.4	4.0
1966–67	…	…	1,327	1,592	3.4	4.1	3.4	4.1
1967–68	…	…	1,556	1,811	3.8	4.4	3.8	4.4
1968–69	…	…	1,663	1,941	3.8	4.4	3.7	4.4
1969–70	…	…	1,759	2,066	3.7	4.4	3.7	4.3
1970–71	…	…	1,778	2,129	3.4	4.1	3.4	4.0
1971–72	…	…	1,879	2,298	3.2	3.9	3.2	3.9
1972–73	…	…	1,994	2,485	3.0	3.3	3.0	3.7
1973–74	…	…	2,529	3,284	3.5	4.5	3.4	4.4
1974–75	…	…	3,320	4,182	3.8	4.8	3.8	4.7
1975–76	…	…	4,056	5,091	3.7	4.7	3.7	4.6
1976–77	…	…	5,210	6,443	4.1	5.1	4.1	5.1
1977–78	…	…	5,876	7,376	4.1	5.1	4.1	5.1
^* Interest payments on public sector debt held outside the public sector less public sector receipts of interest and dividends from outside the public sector.
Source: National accounts.