Catalonia approves 3 green taxes expected to raise €50 million per year

The Catalan Government has approved 3 new environmental taxes on the air pollution emissions of commercial flights, industrial gas and particle emission, and the nuclear production of electric energy. €50 million are expected to be raised per year once the law will be enforced, which is scheduled for mid-year. The Spokesperson for the Catalan Government, Francesc Homs, has admitted that flights at Barcelona’s El Prat Airport would likely be affected. However, he ensured that none of these 3 new taxes would have a negative impact on the consumers. The law specifies that the tax cannot affect pricing, neither for plane tickets nor for electricity, pointed out Homs. He then put in contrast the €98 million fees an airline can have to pay to the Spanish Airport Authority (AENA) with the €1 million in taxes that may be levied by the Catalan Government.

Ascó nuclear plant, in southern Catalonia (by ACN)
Ascó nuclear plant, in southern Catalonia (by ACN) / ACN

ACN

February 11, 2014 07:41 PM

Barcelona (ACN).- The Catalan Government has approved 3 new environmental taxes on the air pollution emissions of commercial flights, industrial gas and particle emission, and the nuclear production of electric energy. The Executive expects to raise about €50 million per year when the law will be enforced, which is scheduled for mid-year. The Spokesperson for the Catalan Government, Francesc Homs, has admitted that the new tax would likely affect arriving and departing flights at Barcelona’s El Prat Airport. However, he ensured that none of these three new taxes would have a negative impact on the consumers. The law specifies that the tax cannot affect pricing, neither for plane tickets nor for electricity, he pointed out. Homs has put in contrast the €98 million fees an airline can have to pay to the Spanish Airport Authority (AENA) with the €1 million in taxes that may be levied by the Catalan Government. The measure increases public revenue in order to reduce public deficit, while at the same time it sends an environment-protection message and limits further budget cuts that affect public services.


Francesc Homs explained that the Catalan Government had chosen these taxation measures to be in line with the best practices in Europe, adding that these green taxes already existed in other European countries and even in other Spanish Autonomous Communities. Despite the significant amount of money expected to be raised, Homs insisted their objective was not to fill the public coffers. “It is a matter of choice, of understanding that there needs to be green tax measures leading to reducing our collective ordinary activities’ impact on the environment” he said.

Regarding the tax on commercial flights, Homs said that a single airline can have to pay up to €98 million to the Spanish Government’s AENA whereas the taxes levied by the Catalan Executive would not exceed €1 million per airline. In any case, the law establishes that the tax cannot affect ticket prices, and the same goes for electricity.

The tax on the nuclear production of electric energy is expected to account for about €43.2 million of the €50 planned. Homs said that this tax was modeled on a green tax voted in the Valencian Autonomous Community, and that a similar one existed in Extremadura before being repealed.

A maximum amount of €3.9 million will be raised from commercial flights

The main purpose of this tax is to act on the air pollution emissions of commercial airlines during landing, take-off and taxiing that damage the air quality in the surroundings. The tax will be limited to the airports belonging to a municipality declared special protection area. It therefore currently applies to Barcelona El Prat Airport, which is located next to protected natural zones, as Homs acknowledged it.

However, the annual economic impact of such a tax will be a maximum amount of €3.9 million in total. Some flights will be exempted from paying it, for instance emergency landings or specific flights supporting humanitarian and charity campaigns. Helicopters used to transport patients or public aircrafts belonging for instance to the fire brigade will also be left out.

€43 million from nuclear power plants

This tax should generate about €43 million. During the tax period, companies will have to make installment payments in three times, corresponding to the first twenty days of April, July and October of each year. The 2014 and 2015 revenues will depend on when the tax is enforced. This tax cancels the civil protection tax on nuclear power plants because there was no wish to implement a double taxation.

A maximum of €2.1 million from industrial and combustion facilities  

This tax is looking to encourage more environmentally friendly behaviors and to improve the overall air quality. The emissions from certain industrial and combustion facilities such as oil and gas refineries, cement and plastic factories and mines will be registered. It is estimated that the tax will raise a maximum of €2.1 million.