Road transport taxation

Photo: Mattias Nilsson / Gorilla.Road transport taxation consists not only of taxation paid as excise duty on transport fuels, but also the one-time car tax paid upon registration and the annual vehicle tax.

Road transport taxes are levied primarily for the purpose of supporting central government finances. The taxation also takes environmental factors into consideration, with emis-sions affecting the level of tax.

One important goal in implementing environmentally based taxation is technological neu-trality: 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.

In 2019, the amount collected in registration-based car taxes was EUR 892 million, and in annual vehicle taxes EUR 1,150 million. The current focus in road transport taxation is on levying taxes related to usage, because approximately 60% of the revenue from road user taxes comes from the taxation of fuels.