Energy Taxation Directive

During the late 1990s and most part of the 2000s, CEE countries reformed their tax systems with two key characteristics: reducing the relative burden of direct taxes and – probably more distinctly, at least for the rest of the developed economies – introduction of single personal income tax rates.

Energy Taxation Directive (ETD) claims to improve the Single Market, promote energy efficiency, and contribute to jobs and growth. In reality, it fails to achieve these objectives. The research by LFMI suggests that in 2012 the grey market for fuel comprised nearly 20 percent of the market for transportation fuel.