Green Tax Reform - Recent Developments

In the context of achieving the objectives of the European Green Deal, the Ministry of Finance proposed two new bills which might come into effect as early as April 2024.

The main points of the proposed reforms include:

1. Introduction of carbon tax on energy products

It provides for the imposition of carbon tax of a predetermined amount, subject to certain exceptions:

(a) on stocks of energy products already under consumption which are stored in petroleum stations or are held by petroleum resellers and petroleum companies.

(b) on carbon emissions emitted by polluting industries.

Among the affected products gasoline, gas oil used as motor fuel, as well as certain categories of lighting oil (kerosene) and LPG are included.