In 2009, EU-27 environmental tax revenue rose to 2.4% of GDP

The EU-27 raised around €287 billion from environmental taxes, corresponding to 6.32% of total revenues from taxes and social contributions (TSC) and 2.43% of GDP in 2009. Since 2003 environmental tax revenue as a share of GDP had fallen, reaching a historical minimum of 2.38% in 2008. EU-27 environmental tax revenue as a share of GDP rebounded from this minimum in 2009. Environmental taxes increase the relative cost and the prices of activities and products harmful for the environment. Consequently, environmental taxes provide incentives to reduce the pressures on the environment. In this way, environmental taxes can help in implementing the 'polluter-pays' principle.