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Spanish F-gas tax proposal would send refrigerant costs skyrocketing

The Spanish government is consulting on a tax which could have serious repercussions for the European cooling industry, suppliers have warned, sending costs of some HFCs up 2000 per cent

Spain’s proposed tax regime includes a tax on the Carbon Dioxide equivalent of refrigerants which would add serious cost onto the price of HFCs - with a kilo of R134A going up tenfold and R404A as much as twentyfold, according to refrigerant suppliers.

The decision by Spain is being seen as potentially opening the floodgates to other governments across Europe passing their own carbon taxes.

“It would mean for instance that 10 kg of 134a would no longer cost £60 in Spain, but £600,” warned one supplier, You can see how governments could seize upon the revenue opportunity if this works out for Spain.”

The moves would cause serious problems for those in the supply chain, if they don’t succeed in passing on the costs, cooling industry observers believe.

One said: “Suppliers will have no choice but to pass the whole cost on, which will put pressure on the contractors to do the same. But a nyone who has signed fixed price contracts had better check their paperwork to ensure they do not get caught out.”

The Spanish consultation, which ended last week, comes alongside the proposal by the European Commission to add a 10 euros a tonne ‘producer tariff’ to the price of HFCs, in the revised F-Gas regulations.


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