State revenues from energy taxes increased significantly between 2021 and 2022 in Luxembourg.

In an answer to a parliamentary question from CSV MP Gilles Roth, the Minister of Finance revealed that revenues from energy taxes were on the rise in the state coffers.

In the first eight months of 2021, VAT on gas and electricity had brought in €20,131,471. In 2022, over the same period, this revenue increased to €44,884,890. These extra €24 million were largely generated by the rise in energy prices, explains Yuriko Backes.

CO2 tax revenues have also taken off with €792,232.09 over the first eight months of 2021, compared with €1,441,799.26 over the same period in 2022 (+81.9%).

But unlike VAT, the revenue from the CO2 tax does not depend on the rise in energy prices. It is determined by the amount of the tax and the amount of energy consumed.

On 1 January 2022, the CO2 tax increased from €4 to €5 per MWh of natural gas. Since Luxembourgers consumed more, the CO2 tax cost them more. The government is planning a further increase in the carbon tax on 1 January 2023.