Tax is abolished on these fuels

Tax is abolished on these fuels

For several years, Sweden has had a policy that favors more environmentally friendly fuels, through reduced or abolished taxes.

However, after a judgment in the European Court of Justice in December 2022, it was forced to introduce a tax on two environmental fuels in March 2023.

On Friday, it was announced that the tax on these fuels will once again be removed Tax Agency.

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Heavily increased costs

The fuels in question are biogas and biodiesel, which with the scrapped tax exemption were subject to a tax of SEK 5.5 per kilo.

This meant, among other things, that biogas became more expensive per kilo than fossil natural gas, and that costs increased dramatically for public transport.

The bus magazine reports that Svensk Kollektivtrafik estimated that public transport costs increased by around SEK 200 million a year.

Abolished tax on these fuels

In October, however, the EU Commission decided that the Swedish tax exemption for biogas and biodiesel must be approved.

This means that Swedish companies can once again receive tax exemption for these fuels, which in practical terms takes place through a deduction in the declaration or through an application for a refund.

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Can get tax refunded retroactively

It will also be possible to get the tax you have paid for biogas or biogasol refunded, by retroactively applying for a review.

Friday’s announcement about the scrapped tax had an immediate effect on prices. Swedish Biogas, for example, already lowered prices on Friday evening, reports Bussmagasinet.

The price of compressed biogas was reduced by SEK 5.2 per kilo including VAT, while the price of liquid biogas was reduced by SEK 5.45 per kilo including VAT.

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