Petrol Taxes Dropping Globally

January 10, 2017 International Tax Cooperation

Taxes on petrolLONDON – Despite an international commitment to reducing emissions levels, the average rate of tax on petrol sales has fallen since 2003.

On January 9th a new study published in the international journal Natural Energy claimed that since 2003 the levels of taxation on petrol has fallen, despite a worldwide dialogue regarding the need to reduce emissions levels and global warming.

According to the results of the study, between 2003 and 2015 the average tax on petrol in 157 countries fell by 13 percent.

It was also shown that in the countries where taxes dropped or subsidies rose, the total level of consumption of petrol increased.

While only a third of countries saw a decrease in taxes, the overall impact of the tax drops was enough to outweigh the tax increases seen across the rest of the world.

Commenting on the implication of the results of the study, the author of the study said “…despite all the commitments to fight climate change, governments are failing to discourage fossil fuel consumption,” and “…at the global level, we are moving in the wrong direction.”