Next month, ACCA will publish a position paper Green taxation in a recession warning that new carbon taxes will not raise nearly as much revenue as cash-strapped national governments hope.
Green taxes are not new, but the assumptions that they might be an increasing form of revenue in the future need challenging. Here are six existing green taxes around the world:
- The US has implemented tax measures to increase investment in renewable energy sources enacting tax credits for the expansion of wind, solar, biomass and other renewable energy technologies.
- China taxes the disposal of household and commercial waste and has a further tax on the disposal of waste water, while companies that reduce their water consumption are offered corporate income tax allowances.
- Germany has implemented taxation on emissions on transport, which are calculated directly on the level of emissions.
- Australia introduced a small levy on fertiliser as early as 1986. Although this does not raise significant amounts in tax revenues, it has had an impact on the type and amount of fertiliser used.
- In Denmark 5.9% of tax revenues are made up of environmental taxes, according to Eurostat, by far the highest proportion in the EU and arguably the highest in the world.
- The UK has implemented a range of environmental taxes, including the Climate Change Levy, a tax on the end-use of 'taxable commodities' (principally electricity, gas and coal) by commercial customers, and the Landfill Tax, which taxes people and organisations when they discard waste in landfill sites.
Let me know if you'd like an embargoed copy of our paper.
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