Green Tax Proposals Taking Off in Europe

As of April 1, energy becomes more expensive in Germany, as part of its plan to shift taxes from income to energy. Revenues will finance lowered old age security premiums.

UK’s proposed 1999 budget: tax revenues on energy use in the business, agriculture, and the public sectors would be returned as a 0.5 percent reduction in the employers contribution to payroll taxes, and programs to promote energy efficiency and renewable energy. A surcharge would be applied for use of coal and gas, and for total energy consumption. Company cars would be taxed according to vehicles carbon dioxide emissions. Other measures to promote non-car commuting,
such as a tax-free bicycling allowance for employee business travel, are being introduced.

France, the world’s second largest consumer of agrochemicals, is considering taxes on pesticides and fertilizers. Revenues would be used to fund pesticide and fertilizer reduction programs.

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