07 Feb 2017

Decision on diesel tax in Aitik

The Swedish government has decided to reject Boliden’s request for a reduction in or remission of a specially charged energy tax equivalent to MSEK 212. The background to Boliden’s request is that the tax paid is correct for the fuel’s use, but that the fuel was incorrectly dyed. The tax was paid in 2013 and impacted on the results in 2015. The decision therefore has no further impact on the cash flow or results.

“We are very disappointed that our appeal to pay the correct tax for mine diesel has been rejected. The consequence is entirely unreasonable in relation to the actual mistake made, that the diesel used in Aitik had the wrong colour,” says Boliden's CEO Lennart Evrell.

Colour coding is used to distinguish diesel for various uses that carry different tax rates. Between April 2009 and October 2012, diesel in Aitik was mistakenly dyed green, the dye that is used for heating oil, among other things. Once Boliden discovered that the dye was incorrect, this was reported to Skatteverket (the Swedish Tax Agency) which, instead of looking at how the diesel was used, decided to impose an additional energy tax of MSEK 212 on Boliden. Following an appeal to the courts, Boliden requested a review from the government with the objection that the consequence was unreasonable in relation to the error made.

The sum was paid in 2013 and written off in 2015, when Boliden also asked the government for a reduction or remission. The current ruling therefore has no further impact on the cash flow or results.