The Ministry of Finance is proceeding with a comprehensive review of the “green” taxation framework while examining the provision of incentives for actions with an ecological footprint. The revision aims at more fair and effective taxation, taking into account social impacts and enhancing transparency regarding the environmental performance of taxes. European Union guidelines for addressing the climate crisis will serve as a compass for the decisions to be made, aiming for balance between economic sustainability, environmental effectiveness and social justice.
According to the latest data from ELSTAT, total revenues from environmental taxes in 2023 reached 9.257 billion euros, down 24.4% compared to 2022. Businesses paid 6.184 billion euros, while households and non-permanent residents contributed 3.072 billion euros. Energy taxes constituted the largest category, reaching 7.547 billion euros.
Special working group for “green” taxes
At the end of 2023, a special working group was established at the Ministry of Finance with the mission to fully record green taxes and fees, analyze the data and design a comprehensive green tax reform. The group will identify short-term, medium-term and long-term needs, so that the new regime will be fair, effective and environmentally friendly.
Meanwhile, the current regime includes a series of “green” fees and taxes, such as recycling fees for PVC products, environmental fees for plastic bags, green diesel fuel taxes and circulation taxes based on vehicle CO₂ emissions. Changes in calculation scales and incentives will contribute to achieving national energy and climate targets by 2030. With this new revision, the government aspires to create a green taxation system that will combine economic sustainability, social justice and real environmental impact.
