In 2017, the value of environmental taxes in Portugal corresponded to 5.041 billion euros, the fifth year in a row in which revenue increased, reversing the downward trend observed between 2008 and 2012 (except for 2010). This amount represents an increase of 4.8% over 2016, showing a similar variation to that observed for total revenue from taxes and social contributions (+ 5.3%).
Environmental taxes
The "Environmental taxes" fact sheet lists the value of taxes levied on goods and services that have a potential negative impact on the environment. It also analyses their distribution by category, as well as Portugal's position compared to the EU.
Description:
Environmental taxes are fiscal tools whose purpose is to promote the adoption of more sustainable consumption habits in order to increase efficiency in the use of natural resources and to encourage society to change behaviours that lead to the degradation of said resources, ecosystems and biodiversity.
The European Commission and EUROSTAT have adopted the broader definition of environmental tax: "taxable base of a particular element which has proved to be especially harmful to the environment, when used or released."
In practice, the environmental tax is applied to goods that cause pollution when they are produced, consumed, disposed of, or to activities that create a negative environmental impact, in order to modify their relative price or associated costs and/or obtain revenue to finance programmes for the protection or restoration of the ecological balance. Environmental taxes are divided into four categories: Energy, Transportation, Pollution and Resources.
This fact sheet concerns mainland Portugal and the Autonomous Regions of the Azores and Madeira and shall be updated on an annual basis.
Objectives and targets:
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Promote the rational use of natural resources and the internalisation of environmental externalities, i.e., the inclusion of the costs of services and environmental damages directly into the prices of the goods, services and activities that are at their origin, contributing to the application of the user-pays principle and the integration of environmental policies into economic policies.
Progress analysis:
Evolution of environmental taxes revenue in Portugal
Notas: p - provisional data
Source: INE, 2018
Impact of environmental taxes on total revenue from taxes and social contributions, and on GDP
Notas: p - provisional data
Source: INE, 2018
The weight of environmental taxes on total revenue from taxes and social contributions has been declining since 2006. However, this trend was reversed from 2014 and reached 7.5% in 2017 (7.6% in 2016). With regard to the impact of environmental taxes on GDP, there was a slight decrease, from 2.8% in 2006 to 2.1% in 2012. In subsequent years, there was a reversal of the trend, with a value of 2.6% in 2017.
Environmental taxes by category
Notas: p - provisional data
Source: INE, 2018
In 2017, environmental taxes included essentially three components - the energy tax (72.1%, comprising taxes on energy products: gasoline, diesel, fuel oil, natural gas, coal and electricity; as well as revenues from auctions of greenhouse gas emission permits); the single road tax (11.9%) and the vehicle tax (15.3%). The remaining 0.7% are related to taxes on resources (0.4%) and to taxes on pollution (0.3%).
Impact of environmental taxes on total revenue from taxes and social contributions in the EU-28 in 2016
Source: Eurostat, 2018
In 2016, in the context of the EU-28, Portugal was the 15th country in which environmental taxes showed a greater importance in total revenue from taxes and social contributions, corresponding to 7.54%, slightly higher than the EU-28 average (6.31%).
Impact of environmental taxes on GDP in 2016
Source: Eurostat, 2018
On the other hand, in terms of the impact of these taxes on GDP, Portugal showed a figure of 2.59%, similar to the EU-28 average (2.44%). In 2016, Portugal was the 15th country in the European Union with the lowest impact of environmental taxes on GDP.
Last update:
Monday, 12 November, 2018
More information at:
Statistics Portugal – www.ine.pt