Ordinance on Mineral Oil Tax

Laws and Policies

CCLW

CCLW national policies

Law passed

The Mineral Oil Tax Act was amended to provide tax incentives for low carbon fuels. It contains provisions that allow a tax reduction of CHF0.40 (USD0.42) per litre petrol for natural gas and liquefied petroleum gas (LPG). Furthermore, biogas and other fuels from renewable energy sources are fully exempted from the Mineral Oil Tax under the condition that they fulfil ecological and social criteria. These include:<br>&nbsp;- Minimum of 40% GHG reduction<br>&nbsp;- Net environmental burden does not significantly exceed the environmental burden of fossil fuels<br>&nbsp;- The cultivation of biofuels must not endanger biodiversity, in particular rainforests<br>&nbsp;In contrast to other countries, in particular the EU, Switzerland has no percentage target for biofuels.