Independent commission to examine green tax policies
Mon 26 November 2007
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A new, independent commission has been established to examine how green taxes can be used to help fight climate change. The Green Fiscal Commission, which will be comprised of senior MPs, academics, business people, consumer and environment organisations will report in March 2009.
The focus on the Commission’s work will be on 'greening the UK tax system' - that is moving taxes from ‘goods’ like labour, to ‘bads’ like environmental damage.
The Commission says that it does not have a view on what level of overall taxation is appropriate but considers that a significant shift from taxing ‘goods’ to ‘bads’ could make a important contribution to the cost-effective resolution of environmental problems.
The Commission is an independent body, is not affiliated to any political party and says it will aim to examine the evidence impartially.
The Financial Times reports that the Commission will consider 'sweeping proposals to fight climate change by generating as much as a fifth of all Government revenues from green taxes by 2020'. Up to £50bn of additional revenue from environmental taxes could be raised and used to pay for cuts in other taxes.
An opinion poll carried out on behalf of the Commission found just over half of the public supported green taxes, compared with nearly a third who were opposed. But support rose strongly to 77 per cent, with just 9 per cent opposed, if the money raised was used to lower other taxes.
Professor Paul Ekins of the Policy Studies Institute will be the Commission's director.
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