Luxembourg

Budget Law (climate tax on liquid fuels and tax rebate on low-carbon cars)

Legislative

Law

Passed in 2017

The budget law in Luxembourg has been related to climate change mitigation efforts for a number of years. In the budget 2018, the law of December 15th, 2017, stipulates in article 28 that the product of the climate change contribution levied on liquid fuels and its assignment to the Climate and Energy Fund can be charged on the revenue and expenditure budget. Article 29 states that the product of the road vehicle tax can be charged on the revenue and expenditure budget and be affected to the Climate and Energy Fund for 40 pr cent of the total.

Article 129d of the budget law defines the conditions of tax rebate for the private ratepayer acquiring a new low-carbon vehicle. The "sustainable mobility rebate" applies to 1) zero-emissions cars functioning with electricity or fuel-cell hydrogen, 2) an electrically-assisted cycle, 3) a cycle registered after December 31st, 2016, and 4) a rechargeable hybrid car with emissions under 50 g CO2/km registered after December 31st, 2017.

Luxembourg

Budget Law (climate tax on liquid fuels and tax rebate on low-carbon cars)

Documents