Denmark to tax all heating from 1 January

The tax is intended to plug a hole in the budget left by falling revenues from fossil fuel duties but its adoption has been delayed by disagreements over its scope

The Danish government is set to introduce a new tax on all heating including district heating and biomass combustion from 1 January to plug a hole in its budget left by falling revenues from fossil fuel duties.

Because the proposal is still under discussion in parliament, it is not yet certain how much money can be raised, a spokesman for the finance ministry said.

The tax is part of the country’s energy agreement, a 2012 plan with wide political backing that sets out how to phase out fossil fuels in the electricity and heating sectors. The government hopes to do so by 2035.

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