Road traffic taxation

Photo: Mattias Nilsson / Gorilla.

In addition to the taxation of fuels used in transport included in excise duties, the taxation of road traffic also consists of the car tax and vehicle tax levied on vehicles.

The road traffic taxes are levied primarily for reasons due to central government finances. In the last few years, the taxation has taken environmental issues into consideration so that emissions affect the level of tax.

One important goal in implementing the environmentally based taxation is technological neutrality: the aim is not to promote any specific vehicular technology via taxation, but instead to promote the more widespread use of all low-emission vehicle and fuel technologies.

The collected car taxes amounted to €1 001 million in 2018, and the vehicle taxes amounted to €1 192 million. At the moment, the focus of road traffic taxation is on levying taxes on usage, because approximately 60% of the income from taxes comes from the taxation of fuels.