Lowest revenue from green tax in 13 years

Figures dropped from 7.7% of total tax revenue in 2006 to 7.3% in 2007

Written by Penny Sukhraj

Green tax revenue has hit it's lowest point in 13 years lowering government coffers from 7.7% of total revenue to 7.3%.

The figures, revealed by the Office for National Statistics, include air passenger duty and fuel taxes.

The news is said to disappoint government which has pledged its commitment to the green agenda several times this year.

The figures are also revealed to have dropped for the last four successive years as government sought to extract more cash from alternative taxes. Environmental taxes made up a record 9.4% of revenue when Labour moved into power in 1997.

Simon Bullock, of Friends of the Earth said government had again failed to deliver on its repeated promise to shift taxes off people and on to pollution.

'Increasing taxes on fossil fuels is an essential weapon in the Government's armoury for tackling climate change. And if Alistair Darling used these extra taxes to cut those on people and jobs, it would be extremely popular too,' said Bullock.

A Treasury spokesman said it was important to look at the 'whole package' of environmental policies.

Further reading:

IT's carbon emissions keep on climbing

Four out of five firms want more green regulations

Airline tax: fuel for thought

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