Taxes are compulsory unrequited payments to a government unit. They include:
- Taxes with their standard rates as well as tax incentives within that tax regime. Examples include reduced energy excise tax rates for agriculture.
- Fees and charges, defined as compulsory requited payments to the government that are levied more or-less in proportion to the services provided.
They exclude penalties (payments conditional on non-compliance); payments for licenses and permits (i.e. requited payments); feebates, systems in which a fee is levied on products or activities that produce high levels of GHG emissions, while a rebate is provided for low levels of emissions alternatives; and tax incentives for R&D activities.