Taxes Lead the Way to a Better Environment

September 23, 2013 Taxation in EUTaxation In Europe

renewable wind energyPARIS – France plans to sever its reliance on traditional fuels by providing tax incentives for using newer and greener technology.

At an environmental conference held in Paris last weekend, the President of France Francois Hollande and the Prime Minister Jean-Marc Ayrault unveiled upcoming tax changes aimed at reducing France’s consumption of fossil fuels by 30 percent within 16 years, and by 50 percent by the end of 2050.

In an effort to encourage the use of greener technology and to reduce the reliance on traditional fuels, the government will introduce a new carbon tax, set at varying rates based on the efficiency and environmental impact of the device or vehicle being used.

The government expects that the new carbon tax will lead to the generation of an extra EUR 2.5 billion in tax revenues in 2015, and a further EUR 1.5 billion in 2016.

In line with the plan to reduce energy consumption in France, the government will also halve the VAT charged on the purchase of any purchases of goods or services to improve the thermal efficiency of homes.

During the conference the Prime Minister stated that the government plans to implement a levy on the profits raised by nuclear power operators, although he did not reveal any details on the timing or extent of the tax.

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