Incentive tax on volatile organic compounds (VOCs)
Volatile organic compounds (VOCs) are used as solvents and are contained in many products such as paints, varnishes, perfumes and cleaning solutions. If VOCs become airborne, they and nitric oxides contribute to the excessive formation of ground-level ozone (summer smog). As a market-based instrument, the incentive tax on VOCs (hereinafter: VOC tax) creates a financial incentive to reduce VOC emission.
VOCs that are used as motor or heating fuels, are transited or exported, or are used or treated in such a way that the compounds cannot be released into the environment are exempt from the tax. Products with a VOC content of no more than 3% are also exempt, as are – under certain conditions – VOCs whose emissions are limited considerably beyond the legal requirements. As the exempted use can usually only be proved after the VOCs have been consumed, the exemption is usually granted by way of a refund of the tax.
The annual revenue from the VOC tax is distributed to the population through the health insurers.
VOCs listed on the positive list of substances (Annex 1 OVOC) and products containing VOCs listed on the positive list of products (Annex 2 OVOC) are subject to the tax. The VOC tax is imposed on the importation and domestic manufacture of VOCs. The tax rate is uniformly CHF 3 per kg of VOCs. Purchasers of VOCs who meet certain quantitative turnover thresholds may apply for an authorisation for the procedure for formal commitment, which allows them to obtain VOCs provisionally exempted from the tax.
Holders of authorisations for the procedure for formal commitment must prepare an annual VOC balance sheet. Based on this balance sheet, the tax is subsequently charged for any VOCs released into the environment. As a rule, a VOC balance sheet must also be prepared by anyone applying for a refund of the tax paid on exempted VOCs. For VOCs exempted under Art. 8 OVOC, as well as for exported VOCs, a simplified form may be used to apply for a refund.
The FOCBS is responsible for levying and refunding the VOC tax. The Federal Office for the Environment (FOEN) supports the FOCBS in implementation, particularly in assessing the effectiveness of the tax and exemptions, as well as in distributing the proceeds to the public. The federal authorities are supported by the cantonal environmental agencies.
