Expert commission established to work out how to 'green' the tax system
Tue 12 February 2008
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A new independent expert group will look at a range of issues associated with environmental tax reform. The Green Fiscal Commission has been formed to break what it describes as the 'political logjam' on green fiscal reform. Meanwhile, the Treasury Select Committee has accused the Government of being "too timid" in introducing green taxation.
Until mid-2009, the Green Fiscal Commission intends to expand the evidence base on environmental tax reform and raise stakeholder and public awareness of the issues with the aim of preparing the ground for a significant programme of green tax reform in the UK.
The Commission does not have a view on what level of overall taxation is appropriate but considers that a significant shift from taxing ‘goods’, like labour, to ‘bads’, like environmental damage, could make an important contribution to the cost-effective resolution of environmental problems.
The Commission is an independent body, unaffiliated to any political party, and aims to examine the evidence impartially. The results will be made public to encourage debate and the Commission's website (see link) is to be updated regularly with its findings.
The Policy Studies Institute is providing the secretariat function for the Green Fiscal Commission.
A recent report from the Treasury Select Committee says that the Government has been too slow to introduce green taxation.
The Committee's Chairman, John McFall said: "We are very disappointed by the Government’s timid use of environmental taxes. True, they have introduced the climate change levy, and aggregates levy, but these are miniscule in the grand scheme of things. Overall, the Government has failed to match its 1997 commitment to increase the use of green taxes.”
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