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Regulatory informationRES-transport

Tax regulation mechanism (Excise duty on liquid fuels)

Abbreviated form of legal source(s)

  • Act 1472/1994
  • Act 393/2013
  • Act 182/2010
  • Decree 1032/2020

Description of support scheme

The Finnish fuel taxation system taxes each component of fuel separately based on its energy content and carbon dioxide emissions, which translates to lower taxation for biofuels and higher for fossil fuels (Art 1 Act 1472/1994). Therefore, biofuels are not exempted from taxation but their taxation level is significantly lower than that of fossil fuels.

Amount

In 2021, the tax on petrol released for consumption is at least €ct 75.96 per litre, for diesel the amount is at least €ct 59.48 per litre. The tax on bioethanol amounts to €ct 50/l and different liquid gases vary from 31 to 13 €ct/kg. (Annex A, Decree 1032/2020). The amounts will change for 2022.

Addressees

The addressee of the excise duty is the supplier, and the suppliers of biofuels are subject to the reduced tax.

Procedure

All authorised fuel suppliers are obliged to keep account of the quantities sold for consumption (Art 6 Act 1472/1994) and to submit a tax report to the district customs authority (Art 31 Act 182/2010).

Competent authority

Finnish Tax Administration

Technologies

Biofuels

Eligible

Electric vehicle
Hydrogen