Annex – State aid for Environmental Protection

1 TAX RATES

1.1 CO ₂-tax ¹⁾> in 2002 kroner

Source: Ministry of Finance
1) The CO ₂-tax on mineral oil was first time introduced in 1991.
2) The CO ₂-tax on coal and coke was introduced in 1992. Coal and coke used as raw material or reducing agent in industrial processes were exempted from the tax.
3) July 1998 the CO ₂-tax on the Continental Shelf was raised to 1.18 kroner per litre/ Sm ³ >(2002 kroner).

1.2 SO ₂–tax rates >in 2002 kroner

Source: Ministry of Finance
1) The sulphur tax is differentiated on the basis of sulphur content in the fuel oil. The rate is currently NOK 0.07 per litre fuel for each commenced 0.25 per cent sulphur content. Fuel oils with less than 0.05 per cent sulphur content is not liable to the sulphur tax.
2) From 1 July 2000 the reduced rate was raised to 0.027 kroner (2002kroner) per litre mineral oil
3) From 1 July 2000 the SO2 tax rate was raised to 6.27 kroner (2002 kroner) per kg SO2 emissions from coal and coke and refineries

1.3 Basic tax on heating oil1) in 2002 kroner

Source: Ministry of Finance
1) The basic tax on heating oil was introduced in 2000. The pulp and paper industry and producers of herring and fishing meal are exempted from the tax. The tax is only levied mineral oil that is not already subject to the auto diesel tax.

1.4 Electricity tax in 2002-øre pr. kWh

Source: Ministry of Finance
1) Manufacturing industry and mining pays 2.3 øre pr. kWh.Power intensive industry, pulp and paper industry and greenhouses are exempted from the tax.
2) Manufacturing industry and mining are fully exempted from the tax.
3) The exemption for the manufacturing industry was expanded to include labour market companies undertaking industry production.
4) The exemption for users with electric boilers was abolished.
5) The exemption is restricted, and only to electric power used in the production process is exempted from the tax. Electric power used in administration buildings is no longer exempted.

1.5 Tax on final waste treatment in 2002-kroner

Source: Ministry of Finance

2. Tax revenue and expenditure

2.1 CO2, SO2 and basic tax on fuel oil

Source: Ministry of Finance
1) The CO2 tax on mineral oil (0.49 kr/litre) is used as benchmark.
2) Revenue figures from St. prp. nr. 1 (2000-20001) Skatte- avgifts- og tollvedtak and estimated expense figures from St. meld. nr. 1 (1999-2000) Nasjonalbudsjettet 2000.
3) Revenue figures from St. prp. nr. 1 (2001-2002) Skatte- avgifts- og tollvedtak and estimated expense figures from St. meld. nr. 1 (2000-2001) Nasjonalbudsjettet 2001.
4) Estimated revenue figures from St. prp. nr. 1 (2000-20001) Skatte- avgifts- og tollvedtak and estimated expense figures from St. meld. nr. 1 (2001-2002) Nasjonalbudsjettet 2002.
5) Estimated revenue figures from St. prp. nr. 1 (2001-20002) Skatte- avgifts- og tollvedtak and estimated expense figures from St. meld. nr. 1 (2001-2002) Nasjonalbudsjettet 2002.
6) The tax expense for exemptions on the Continental Shelf was in 2001 approx. 240 mill. NOK. The remaining expenditure are mainly coming from exemptions and reductions in the processing industry.

2.2 Tax on electricity consumption

Source: Ministry of Finance
1) Accounting figures for 1999-2001. For 2001 the figures are from the balanced budget, jf. St. prp. nr. 1 (2001-2002) Statsbudsjettet medregnet folketrygden. For 2002 the figures are from Budsjettinnstilling S. nr. 1 (2001-2002)
2) The tax expenditure are based on the exemption for pulp and paper industry, power intensive industry, mining and other industry and greenhouses.

2.3 Tax on final waste treatment

Source: Ministry of Finance
1) Accounting figures for 1999-2001. For 2001 the figures are from the balanced budget, jf. St. prp. nr. 1 (2001-2002) Statsbudsjettet medregnet folketrygden. For 2002 the figures are from Budsjettinnstilling S. nr. 1 (2001-2002)

3 Number of units in the manufacturing and mining industries entitled to reduced rate/exemption of various taxes

3.1 CO2, SO2 and basic tax on fuel oil

Source: Central Bureau of Statistics and Ministry of Finance

3.2 Tax on electricity consumption

Source: Norway statistics and Ministry of Finance
1) A local kind of activity unit is defined as a functional unit, which at a single physical location is engaged mainly in activities within a specific activity group. This definition conforms to the one framed by ISIC Rev. 3.

3.3 Tax on final waste treatment

Source:The Norwegian Pollution Control Authority
The figures are merely estimates based on retained reports from the enterprises and qualified guessing out of knowledge of the enterprises.

4. Number of units, compensation of employees, gross value of production and value added in the manufacturing industry, 1998 (CO ₂, SO ₂, electricity tax and basic tax on heating oil)

Source: Statistics Norway, Norwegian Pollution Control Authority and Ministry of Finance
1) 4 pulp and paper units with the largest oil utilisation
2) inclusive of one plant that produces titanium dioxide slag and high purity iron
3) data only till 1997. One magnesium plant included also together with primary aluminium

5. Costs of withdrawing exemptions and reductions for various industries. Figures from 1998 (CO ₂, SO ₂, electricity tax and basic tax on heating oil)

Source: Statistics Norway, Norwegian Pollution Control Authority and Ministry of Finance
(*) CO2-emissions mainly from use of gasses

6. Increased costs as a percentage of variable costs and gross operating profit, 1998 (electricity tax, CO ₂, SO ₂ and basic tax on heating oil)

Source: Statistics Norway, Norwegian Pollution Control Authority and Ministry of Finance
(*)Gross operating profit is defined as value added minus compensation of employees. If gross operating profits are expected to be lastingly negative, one will assume that the unit is closed down relatively soon. Over time gross operating profits has to cover also capital costs (depreciation and remuneration of investments). Thus, to ensure that the production capital is maintained and renewed, gross operating profit has to be positive and of some size. Only production units are included in the calculations, while other activities (main office, sales department, research laboratories, etc.) are excluded as far as these have other locations. This implies that profits are over-estimated.