The Danish Parliament has introduced a new CO2 tax on fuels, increasing the existing tax by 400% while cutting the excise duty on fuels in half. A new CO2 equivalent (CO2e)-emissions tax has also been added for companies covered by the European Union’s Energy Trading System (ETS-1). The reform’s impact includes higher taxes on oil and coal for space heating/district heating, and a gradual increase in the CO2 tax on fuels for the Danish industry from 2025 to 2030. VAT-registered companies not in the ETS-1 can obtain partial reimbursement of the CO2 tax on fuels for 2025-2029, but this will no longer be possible from 2030. Excise duties on fuels have generally decreased, and companies not in the ETS-1 can obtain full reimbursement of the excise duty if the fuels are used for certain processes.
Source EY
