Creation of the domestic consumption tax on coal (hard coal, lignite and coke)

Article 36 of the amending finance act for 2006 creates Article 266 quinquies B of the Customs Code: hard coal, lignite and coke intended for use as fuel are subject to a domestic consumption tax of €1.19 per megawatt-hour, payable on delivery to the end user or on import. Uses other than as fuel, dual uses (metallurgical or chemical reduction processes) and processes making non-metallic mineral products are outside its scope; coal used for electricity generation, for its own extraction and production, and household consumption are exempt. The revenue goes to the environment and energy agency ADEME. The tax transposes Directive 2003/96/EC on energy taxation, whose minimum rate is €0.54 per megawatt-hour. Planned for 1 January 2007, its entry into force was postponed to 1 July 2007 by the National Assembly. Its rate was raised sharply from 2014 with the carbon component.