Green group urges eco-tax system - 26/10/09

Green group urges eco-tax system

A new report published has revealed that introducing green taxes could be the key to lowering carbon emissions in the UK and meeting international targets.

Taxing high carbon activities can protect the environment at a lower cost than other measures, and importantly, create employment opportunities in low carbon industries, according to the Green Fiscal Commission.

The Commission, which conducted a two-year study, found that by taxing driving and energy use, while lowering levies on National Insurance, it is possible to create a neutral overall framework in terms of the total burden on taxpayers.

The newly published report includes a variety of options fro an eco-tax system, but does not include a package of recommendations.

The most stringent models examined are understood to envisage additional taxes of as much as £3,300 on a new car and a tripling in fuel duty, but a source close to the Commission stressed that these were options, and not favoured proposals.

The source stressed that any package would have to include measures to protect the poor: "For the green fiscal reform to be fair, low-income households would need to be protected while improvements are made to their homes to make them more energy efficient.

"This is not just about reducing emissions, but helping the UK to develop low-carbon competitiveness," said Green Fiscal Commission Director Paul Ekins, professor of energy and environment policy at University College London.

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