Switzerland Could Hike Carbon Taxes
July 15, 2014 Taxation in Switzerland
BERN – Switzerland is warning energy companies to lower their emissions by the end of the year or face a tax hike in 2016.
Carbon taxes in Switzerland may be raised in 2016 by as much as 40 percent above the current level unless the national energy sector can reduce their emissions to an acceptable level by the end of the current year, according to information in a new statement issued on July 14th by the Federal Office of the Environment.
The possible tax hikes will be based on how much the emissions from the national energy sector can be cut in comparison to the emissions levels seen in 1990.
No tax hikes will be instated if emissions fall at least 24 percent below the levels seen in 1990, while a reduction of between 22 and 24 percent will see taxes raised from the CHF 60 per ton of carbon to CHF 72 per ton, a hike of 20 percent.
However, if the reduction in emissions fails to reach even 22 percent, then the tax will be hiked to CHF 84, a rise equivalent to 40 percent.
So far over the course of this year, emissions from the energy sector in Switzerland fell by 1.7 percent in comparisons to the levels seen in the previous year, reaching a level 19.3 percent lower than in 1999.
Photo By: Alex