Environment: Spain looks to increase tax on diesel

THE Spanish government is considering a package of green taxation measures to help fund its recovery from the Covid-19 pandemic – including raising duty on diesel.

Taking environmental measures will help access European funds but any rise in taxes at the pumps will be bitterly opposed by powerful transport unions.

Currently, the government takes 30.7 cents per litre on diesel, compared to 40.07 cents per litre of petrol. Now Madrid wants to increase tax on diesel to 34.5 cents, a move set out in a draft budget for 2021, going some way towards balancing the levy on the two fuels.

Other environmental taxes could include on landfill and on single use plastic. Seen as a way of fighting climate change, it will also boost commitment to international agreements.

According to estimates, the government believes it can collect €450 million
increasing the tax on diesel. It estimates it would cost an average driver just €3.50, based on travelling 15,000km a year – but hauliers are said to be “furious” and once again ready to fight the move.