The Danish parliament proposed draft bills L 182 and L 183, outlining a comprehensive green tax reform package.
Key Provisions
- Phased CO2 Tax Implementation: A CO2 tax will be phased in starting from 2025 and reaching its final structure by 2030. The tax will vary depending on a company’s involvement with the EU Emissions Trading System (EU ETS).
Non-EU ETS companies will bear a CO2 tax of DKK 750 per tonne will apply, with a reduced rate of DKK 375 per tonne for district heating.
EU ETS participants (Companies already under the EU ETS) will face a CO2 tax of DKK 375 per tonne.
Mineralogical Industries (Industries involved in the production of cement, brick, metal, glass, etc) will face a preferential rate of DKK 125 per tonne.
- Expansion of CO2 Tax Scope: The draft bills propose extending the CO2 tax to previously untaxed sectors, including domestic aviation, ferries, and fishing.
- Tax Deduction Abolishment: Certain non-quota companies may lose their current basic tax deduction as part of the reform
- Double Taxation Prevention: A reimbursement system will be established to prevent products subject to both CO2 and energy taxes from being double-taxed.
