EU seeks energy tax overhaul for greener market

The European Commission has proposed to overhaul outdated rules on the taxation of energy products in the European Union. The new rules aim to restructure the way energy products are taxed to remove current imbalances and take into account both their CO2 emissions and energy content.

Existing energy taxes would be split into two components that, taken together, would determine the overall rate at which a product is taxed. The commission wants to promote energy efficiency and consumption of more environmentally friendly products and to avoid distortions of competition in the single market. The proposal is aimed at helping member states redesign their overall tax structures in a way that contributes to growth and employment by shifting taxation from labour to consumption.

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