Carbon Taxes Needed on Shipping and Flights
January 15, 2016 International Tax Cooperation
WASHINGTON D.C. – Despite logistic difficulties, the IMF is urging carbon taxes to be levied on fuels used in international shipping and flights.
In a recent report the international non-government organization the International Monetary Fund claimed that carbon pricing should be “front and centre” in international efforts to reduce carbon output around the world.
As part of the push for carbon taxation, the IMF also added that substantial tax revenues could be raised to fight climate change by levying carbon taxes on the use of fuels for international aviation and maritime transport.
It is estimated that as much as USD 25 billion could be raised by levying such taxes.
Emissions from planes and ships are thought to account for about 4 percent of global emissions.
The IMF conceded that it is difficult to levy taxes on international shipping, due to the international nature of the business.
Similarly, taxes on aeroplane fuels are also difficult to levy, due to numerous international agreements which limit such measures.
Photo By: L.C. Nøttaasen