MPs call on the Treasury to adopt a coherent strategy towards environmental taxation

 

A recent inquiry conducted by the Environmental Audit Committee into the Budget 2011 and environmental taxes has found that the Treasury has undermined public trust in green taxes. The report finds the public feel green taxes to be increasingly used to generate extra revenues, rather than a serious attempt to change behaviour that is damaging to the environment. Chair of the Environmental Audit Committee, Joan Walley MP said, "The Treasury needs to stop giving green taxes a bad name. Recent Budgets have created the perception that environmental taxes are simply being used to pinch extra pennies from people. Politicians should use green taxes more carefully to challenge and change the most polluting activities. The Government must put its money where its mouth is and put greening the economy at the heart of its plan for growth." The report calls on the Treasury to adopt a coherent strategy towards environmental taxation and for environmental taxes to be straightforward, so that business and individuals can clearly identify the behavioral signals created by the taxes and understand the cumulative effects of environmental tax and regulation. The report also makes the key recommendation that revenues from green taxes be ring fenced for reinvestment in the green economy.

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