Slew of Green Taxes Recommended for UK

October 27, 2009 Taxation in UK  No comments

The Green Fiscal Commission (GFC) is recommending that the UK government instates a number of new “green“ taxes.

In a report released on October 26th, the GFC recommended that the UK government implements a set of new tax measures aimed at reducing carbon emissions and creating new jobs. The report is the conclusion of a two-year study, which examined similar attempts across Europe.

The GFC is recommending a total of £150 billion in new taxes. The list of ideas includes a £300 rise in levies on new vehicle purchases. The tax will increase by an extra £300 per year, for the next ten years. Under the GFC recommendations, fuel duties would be tripled over the space of three years. Increases in taxes on household energy were also mooted.

The GFC has stated that the increases should be accompanied by appropriate decreases in personal taxes or National Insurance contributions. According to Professor Paul Ekins, Director of the Green Fiscal Commission, increasing taxes on pollution causing activities and subsidizing other aspects of the taxation landscape will create up to 500,000 jobs by 2020.

In support of the green taxation concept, the GFC report states “Despite these negative perceptions, green fiscal reform should lead to widespread economic, environmental and welfare benefits.” Expanding, the report continued “These include new low-carbon industries with the possibility of export markets; a better-trained construction industry; far more energy-efficient homes, with consumers keeping warmer while using less energy; and greater energy security, the UK being less vulnerable both to disruptions to supplies of fossil fuels and to energy price rises in oil and gas markets.”

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