Review of the Energy Taxation Directive

The revision of the Energy Tax Directive as being proposed by the European Commission seeks to align the taxation of energy products and electricity with European Union (EU) energy and climate policies, to contribute to the EU2030 energy targets and climate neutrality by 2050. It also aims to preserve the EU single market by updating the scope and the structure of tax rates while rationalising the use of optional tax exemptions and reductions.

The main objectives of revising the Directive are to:

  • align taxation of energy products and electricity with EU energy and climate policies, to contribute to the EU 2030 energy targets and climate neutrality by 2050;
  • preserve the EU single market by updating the scope and the structure of tax rates, and rationalising the use of optional tax exemptions and reductions.