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Box 1.1 Key measures of the 2014 Tax Reform
(...)
Green taxes
• A flat rate tax on fossil fuels was established, based on carbon content. In 2015, the rates charged on different types of fuel were as follows: propane: Mex$5.91 cents per litre; butane: Mex$7.66 cents per litre; gasoline (petrol) and aviation fuel: Mex$10.38 cents per litre; jet fuel and other kerosenes: Mex$12.40 cents per litre; diesel: Mex$12.59 cents per litre; fuel oil: Mex$13.45 cents per litre; petroleum coke: Mex$15.60 per tonne; coking coal: Mex$36.57 per tonne; coal: Mex$27.54 per tonne; other fossil fuels: Mex$39.80 per tonne of carbon contained in the fuel. The amount of the tax will be adjusted annually according to the variation in the national consumer price index, so as to remain constant in real terms.
• The reform also introduced an ad valorem tax on pesticides, herbicides and fungicides, based on the product's toxicity category, with rates of between 0% and 9% as from 2015 (in 2014 the rates were between 0% and 4.5%). In the case of imports, the tax base is the value used for tariff purposes, plus other levies payable, except for VAT.
(...)

Concerns about automobiles relate to the various vehicle characteristics, such as engine size, weight, and wheelbase used in the excise tax calculation that is considered as complex and favouring domestically manufactured vehicles. Furthermore, the 2016 excise tax structure (see above) may not be technologically neutral, e.g. a hybrid car emitting CO2 higher than 100 g/km will be subject to a higher excise tax (20%-50% excise tax) than an eco-car emitting CO2 higher than 100 g/km (17% excise tax). The authorities indicated that for excise taxes on a hybrid car and an eco-car, in principle, three elements are taken into account: the CO2 emission, the size of engine, and the type of fuel, to determine the level of environmental friendliness, which the tax structure encourages.

Table 3.5 Selected indirect tax revenues, by source, 2011-16
(Dalasi million)
Source 2011 2012 2013 2014 2015 2016a
(...)
Environmental tax Domestic 0.28 0.11 0.10 0.12 0.15 0.41

The "Terra Ranka" Plan provides for capacity building for the Directorate General of Forests and Hunting and in particular its capacities for guidance and planning of forest exploitation. The PNIA envisages the adjustment of forest taxes as well as taxes on wildlife exploitation; revision of the forestry code to improve forest resource management on a community basis; and the introduction of a wood charcoal tax as part of the reorganization of the wood and charcoal industry.

The 2016 Finance Law broadens the scope of VAT, which now extends to purchases by some government bodies, private educational institutions, driving schools, the manufacture and sale of solar water heaters, the import of absorbers for solar collectors for household use, and wholesale and retail sale of medicines and pharmaceuticals. These and other categories will be defined in decrees. Agricultural and fishery products are not included.

(...) A carbon tax is also charged on domestic and imported carbon based fuels as a specific duty per litre which varies by product based on its emissions. (...)

(...) During the review period, tourism tax policy has undergone some changes in an effort to better align taxes with industry realities. Currently, the Government collects six different taxes from tourism and tourism‐related activities: (...) the Bed-Night Tax at US$8 (previously US$6) per accommodation bed per night that was scheduled to cease at the end of 2013 but was extended until 31 December 2014 and replaced by a green tax as of November 2015; (...)

Table 3.2 International trade taxes as a share of total tax revenue, 2013/14-2016/17
(per cent)
Type 2013/14 2014/15 2015/16 2016/17
(...)
Environmental levy n.a. n.a. 0.6 0.6

Imported and domestically-produced goods sold in non-biodegradable packaging, or packaging generating waste (e.g. cardboard, paper, bottles, plastic and metal), are subject to an Ecological Tax (Taxa Ecológica). The tax is weight-based, and ranges from CVEsc 2 to 200 per kg on the weight of the product, inclusive of packaging (Table A3.3). The tax was extended to cigarettes, petroleum products, batteries, electronic goods, and tyres in 2012. [32] The tax is collected by the local tax authority when a local product enters the market and on imports by the customs authority at the time of importation. Exempt from the tax are materials used in the packaging of medicines and basic foodstuffs, goods sold to the State administration, and imported packaging materials for goods to be exported or re-exported. However, exported goods as such are not exempted from the Ecological Tax.

[32] Law No. 17/VIII/2012 of 23 August 2012. The law includes a table setting out the rates for all goods subject to the tax (Articles 3 and 7). The 2004 law determined the tax at a specific rate per unit of packaging for imported beer and soft drinks, or 10% ad valorem for empty packaging materials (imported or domestically produced). In 2010, the amended law extended the scope of the Ecological Tax to all non-biodegradable packaging, whether empty or carrying imported or local goods.

The reform introduces two types of environmental levies. Firstly, a tax is imposed on fixed source carbon dioxide (CO2) emissions, of US$5 per tonne, and on particulate material (PM), nitrogen oxide (NOX) and sulphur dioxide (SO2) emissions, for which the rate is calculated according to the social cost of the pollution, based on the different dispersion capacities of the pollutants and the size of the population exposed. Secondly, new light and medium sized motor vehicles are taxed in proportion to the environmental damage that the vehicle in question causes during its useful life, based on their NOX emissions, their urban yield and their sale price. (...)