€5 billion of environment related taxes were collected in 2016, an increase of 2.6% on 2015 and the highest level yet recorded. Energy taxes (mainly taxes on transport fuels) accounted for 61% of total environment taxes in 2016 with another 38% coming from Transport taxes (including motor tax and vehicle registration tax).
Figure 1 shows that environment taxes reached €4.8 billion in 2007 before falling to €3.8 billion in 2009. Taxes have since increased to €5 billion in 2016. As a percentage of total taxes environment taxes increased from 8.0% in 2007 to a high of 9.1% in 2010. In 2016 the percentage share was 8%.
Energy taxes increased from €2.3 billion in 2007 to €3.1 billion in 2016. Energy taxes as a percentage of total environment taxes increased from 46.6% in 2007 to 61.0% in 2016 with the combined Carbon tax and the Public Service Obligation levy accounting for 24.8% of energy taxes in 2016.
In 2007 Transport taxes (mainly vehicle registration and motor taxes) reached €2.5 billion with vehicle registration tax accounting for 61.7%. Transport taxes then fell to €1.5 billion in 2011 before rising again to €1.9 billion in 2016. 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 €56 million in 2007 to €66 million in 2012 before falling back to €45 million in 2015 and then rising again to €58 million in 2016. The plastic bag and landfill levies were combined prior to 2009, together they increased from €55 million in 2007 to €65 million in 2012 before dropping to €44 million in 2015 then rising again to €57 million in 2016.
NACE Sector Analysis
Figure 2 shows environment taxes by NACE Rev. 2 sector of Payee. In 2007 estimated environment taxes levied on households were €3.3 billion, representing a 68% share of total environment taxes. Household environment taxes then fell to €2.5 billion in 2009. In 2016 household environment taxes were €2.9 billion and represented a 58% share of total environment taxes.
Environment taxes levied on Service industries were €1.2 billion in 2007, representing a 24% share of total environment taxes. In 2016 environment taxes paid by Service industries reached €1.5 billion, their highest level and represented a 31% share of total environment taxes. The recent gradual upward movement in the percentage share in the years to 2016 being largely attributable to increases in Carbon tax and the Public Service Obligation levy.
Environment taxes levied on Industry were €0.4 billion in 2007, falling back to €0.3 billion in 2010. In 2016 environment taxes levied on Industry were €0.5 billion. In 2007 the percentage share of total environment taxes levied on industry was 7.4% while in 2016 it was 9.8%.
Environment taxes levied on the Agriculture sector were €0.03 billion in 2007, representing a 0.6% share of total environment taxes. In 2016 environment taxes levied on the Agriculture sector were €0.08 billion and represented a 1.5% share of total environment taxes.