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Switzerland Modifies Mineral Oil Tax Ordinance

by Ulrika Lomas, Tax-News.com, Brussels

24 October 2013


The Swiss Federal Council has approved plans to amend the mineral oil tax ordinance, providing that producers of biogas used as a fuel in electricity production are to be subject to mineral oil tax in the future.

The planned modifications to the existing legislation are designed to place all biogas producers on the same tax footing. Producers of biogas used for vehicle fuel are already subject to the levy.

Furthermore, the Federal Council aims to ensure that biogas used for electricity production benefits from the same mineral oil tax relief as is currently accorded to vehicle fuel biogas, provided that it complies with ecological and social minimum criteria.

In addition, the cost-covering feed-in tariff (KEV/RPC), applicable to electricity produced via biogas, is to be linked to sustainability requirements provided for in the mineral oil tax ordinance.

Finally, small modifications to the mineral oil tax legislation are to be made regarding supply under diplomatic and consular arrangements, the tax rebate accorded to professional fishermen, and the coloration and labeling of heating oil.

Defending its plans, the Federal Council insisted that changes to the legislation were deemed necessary given the rise in the number of biogas installations and the number of raw materials used. The Federal Council emphasized that the context in which biogas producers work has fundamentally changed, and highlighted the fact that the difference between the treatment of biogas used in electricity production and biogas used in vehicle fuel has increased.

The envisaged changes to the mineral oil tax ordinance are due to enter into force on January 1, 2014.

TAGS: tax | corporation tax | legislation | Switzerland | tax breaks

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