Green levy urged for energy market
New taxes are needed to ensure fair play in the energy market after deregulation takes effect in 1998, according to a left-leaning research body, reports Guy Dresser.
The Institute for Public Policy Research said that new levies would be needed to prevent energy companies ‘cherry-picking’ only profitable customers after the monopoly network is disbanded. In the report, Energy 98, the institute said a tax on inefficient users tied to investment cycles could encourage businesses to promote green awareness.
The institute’s chief economist, Dan Corry, said such measures would be linked to reductions in National Insurance contributions. ‘We believe that raising the cost of energy will be a welcome move. In energy-intensive industries it will take time to implement, so we suggest a phased introduction.
It’s a means of obliging them to deliver on efficiency promises. Increased competition is good, but tinkering is needed at the margins to ensure everyone’s objectives are met. This will be a burden on energy-intensive industries, but there will be a benefit by reducing NIC. The business sector as a whole would not see its net costs rise.’
The Government’s Landfill Tax, announced last year, is also linked to a reduction in NIC. Corry said there was a strong case for allying green taxes with lower employment costs: ‘It is widely accepted that it is right to increase the price of energy from non-renewable sources.’
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resource£394bn deficit means tax rises will be necessary to pay off coronavirus costs Read More...
View articleTax managers warn of complexities in HMRC’s WFH tax allowances Read More...
View articleAmerican expats and green card holders living in the UK face a number of complex federal and state filing requirements ahead of Tax Day on 15 April Re...
View articleA shift in mindset can aid with the incentivisation of your clients. By being more proactive, friendly and approachable, you are more likely to open l...
View articleWith IR35 regulations set to be extended in six months, the vast majority of organisations are not ready to implement the new rules, according to a re...
View articleHMRC has experienced an increase in its revenue due to further investigations in the year 2018/19. Read More...
View articleThe survey found that the problem was particularly prevalent among employees of smaller businesses, with 77% of SME employees believing, incorrectly, ...
View articleLast year, HMRC imposed a record £860m in penalties on individual taxpayers, up 24% from £694m in 2017/18, according to accounting group UHY Hacker Yo...
View article