Australia
The fuel tax system in Australia is very similar to Canada in terms of its double dipping tax rates, but varies in the case of exemptions including tax credits and certain excise free fuel sources. Fuel taxes are handled by both the Federal and State Governments, including both an Excise Tax and a Goods and Services Tax or "GST". The tax collected is generally used to help fund national road infrastructure projects and repair roads, as well as provide extra revenue for other services.
At current time of writing (June 2006), the Fuel Tax Bill 2006 is currently being debated in the Australian Senate. If passed, changes to the information below could occur.
The Goods and Services Tax of 10% is charged and included in the price of all fuel purchases in Australia.
The excise tax on commonly used fuels in Australia as of June 2006 are as follows:[citation needed]
- $0.38143 per litre on Unleaded Petrol fuel (Includes standard, blended (E10) and premium grades)
- $0.38143/0.40143 per litre on Diesel fuel (Ultra-low sulphur/Conventional)
- $0.00 (Excise-Free) per litre on Liquified petroleum gas used as fuel (Autogas or LPG as it is commonly known in Australia)
- $0.38143 per litre on Ethanol fuel (Can be reduced/removed via Grants)
- $0.38143 per litre on Biodiesel (Can be reduced/removed via Grants)
Note: Petrol used for Aviation is taxed at $0.02854 per litre
The state government of Queensland also provides an 8.354c/litre subsidy to most fuels bought (including Unleaded, Blended unleaded, LPG and Ethanol). This is usually reflected by an 8.354/litre difference at the pump price, as the subsidy is paid directly to retailers.
There are also a number of various grants and incentive schemes involving tax credits and rebates that generally apply to businesses or industries that rely heavily on the use of fuels, such as transport and aviation. There are also rebates that encourage the production and importation of clean fuels.
Canada
The tax on fuel in Canada can vary greatly between locales. On average, about one-third of the total price of gas at the pump is tax. Excise taxes on gasoline and diesel are collected both federal and provincial governments, as well as by some select municipalities (Montreal, Vancouver, and Victoria); with combined excise taxes varying from 16.2 ¢/L in the Yukon to 30.5 ¢/L in Vancouver. As well, the federal government and some provincial governments (Newfoundland and Labrador, Nova Scotia, and Quebec) collect sales tax (GST and PST) on top of the retail price and the excise taxes.[1]
The Government of Canada collects about $5 billion per year in excise taxes on gasoline, diesel, and aviation fuel as well as approximately $1.6 billion per year from GST revenues on gasoline and diesel (net of input tax credits).
Collectively, the provincial governments collect approximately C$8 billion per year from excise taxes on gasoline and diesel.
Taxes collected by the federal government do not get reserved for any specific program. However, provincial taxes usually go to fund road repair and construction with a portion also being directly downloaded to municipalities.[3]
Many Canadians cross into the United States to buy fuel due to lower fuel tax south of the line.
Netherlands
The sale of fuels in the Netherlands is levied with an excise tax. A 1995 excise was raised by Dutch gulden 25 cents (€0.11), the Kok Quarter (€0.08 raise per litre gasoline and €0.03 raise per litre diesel), by then Prime-Minister Wim Kok is now specifically set aside by the second Balkenende cabinet for use in road creation and road and public transport maintenance. The 2007 fuel tax was € 0,684 per litre or $ 3,5 per gallon. On top of that is 19% VAT over the entire fuel price, making the Dutch taxes one of the highest in the world.
People's Republic of China
In the People's Republic of China, the fuel tax has been a very contentious issue. Efforts by the State Council and the Communist Party of China to institute a fuel tax in order to finance the National Trunk Highway System have run into strong opposition from the National People's Congress, largely out of concern for its impact on farmers. This has been one of the uncommon instances in which the legislature has asserted its authority.
United Kingdom
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From 2007-10-01 the main road fuel (petrol and diesel) duty rate in the UK is GBP£0.5035 per litre. The rate for biodiesel and bioethanol is £0.3035.[4]
Jet fuel used for international aviation attracts no duty, and no VAT.
Note: in the UK, Value Added Tax (VAT), currently at 17.5%, is also charged on the price of the fuel and on the duty. At a pump price of 100p/litre (typical for unleaded as at November 2007), this would put the combined tax at 65.24p/litre, or approximately USD$5.043 per gallon. (Thus without tax, the retail price would be 34.76p per litre, making a combined tax rate of 188%.
United States of America
The first U.S. state tax on fuel was introduced in February 1919 in Oregon.[5] It was a 1 cent per U.S. gallon (0.3¢/L) tax. In the following decade, all of the U.S. states (48 at the time), along with the District of Columbia, introduced a gasoline tax. By 1939, an average tax of 3.8¢/gal (1¢/L) of fuel was levied by the individual states. The fuel tax in Texas is currently set at 20¢/gal since being raised to that amount in 1991. In May of 2007, the Texas House of representatives unanimously voted to pass a 'gas-tax relief' measure for the 2007 summer driving period. The measure was not passed by the state Senate.
While state fuel taxes had been around for more than a decade, the first federal gasoline tax in the United States was created on June 6, 1932 with the enactment of the Revenue Act of 1932 with a tax of 1 cent/gal (0.3¢/L). The U.S. federal gasoline tax as of 2005 was 18.4¢/gal (4.86¢/L), and the gasoline taxes in the various states range from 10 cents to 33 cents, with an average about 22 cents per U.S. gallon (5.8¢/L), making the average combined tax on gasoline 42¢/gal. Unlike most goods in the U.S., the price displayed includes all taxes, rather than being calculated at the point of purchase.
The head of the U.S. Dept. of Transportation stated on 15 August 2007 that about 60% of federal gas taxes are used for highway and bridge construction. The remaining 40% goes to other, unrelated uses.[6] However, revenues from other taxes is also used in federal transportation programs.
