Environmental Taxes and Charges

NOTES ON METHODOLOGY

Legal and methodological framework

The First Release is prepared on the basis of the Report on Own Income and Revenues in the Government, County and Town/Municipal Budgets (P-1 form) and the Report on Payments and Arrangement of Joint Budget Incomes, Particular Institutions and Trade Companies Owned by the Republic of Croatia and Incomes for Other Public Needs (P-2 and P-3 form) of the Financial Agency, as well as on the data of the Environment Protection and Energy Efficiency Fund.

Definitions

Environmental tax is a tax with a physical unit (or its proxy) as a base of something that has a proven, specific negative impact on the environment and which is identified as a tax in ESA 2010.

Environmental charges are the same as fees and are defined as compulsory, non-refundable payments to the general government or to bodies outside the general government such as environment protection funds or water management. Payments for services are considered to be fees. 

Environmental tax revenue means the revenue collected from taxes within particular environmental categories (energy taxes, transport taxes, pollution taxes and taxes on resources).

Energy taxes include taxes on energy products used for both transport and stationary purposes. The most important energy products for transport purposes are petrol and diesel. Energy products for stationary use include fuel oils, natural gas, coal and electricity. The CO₂ taxes are also included in this category.

Transport taxes include taxes related to the ownership and use of motor vehicles, taxes on other transport equipment (e.g. planes) and related transport services (e.g. duty on charter or scheduled flights. The transport taxes may be "one-off" taxes related to imports or sales of the equipment or recurrent taxes such as an annual road tax.

Pollution taxes   Pollution taxes include taxes on measured or estimated emission to air and water, management of solid waste and noise. CO₂ taxes are an exception, since they are included in energy taxes as discussed above.

Taxes on resources include taxes linked to the extraction or to the use of natural resources, such as water, forests, wild flora and fauna, since these activities deplete natural resources

Abbreviations
CO2	carbon dioxide
ESA 2010	European System of Accounts, 2010 version