Charge on Petrol, Hungary
The aim of the product charge on petrol is to raise revenue for protective measures to solve transport-related pollution problems.
In 1992, a minor charge of ft 0.5/1 on petrol was introduced. This addition to the existing consumption tax is a substitute for an emission charge on the transport sector. The charge is paid by petrol producers or importers.
The collection is administered by the Central Environmental Protection Fund. Spending is limited to supporting yearly programs for reducing transport related pollution (mainly air pollution).
Allocation of Revenues
The Central Environmental Protection Fund (CEPF) is the most important mechanism for the redistribution and use of revenue from economic instruments. The CEPF, administered by the Ministry of Environment and Regional Policy, provides financial support and loan guarantees to assist the realisation of environmental investments. It covers costs to alleviate environmental damage caused by accidents, and contributes to other environmental initiatives. Sources for this fund originate from environmental fines, environmental product charges, tax revenues foregone by the central budget, international aids and grants, the direct central budget allocation and the PHARE sources administered separately. Money from the Fund is awarded as grants and interest-free loans related to improving the environment, and the high priority target areas and allocations are determined each year in the Annual Program for Support