TaxCorporate TaxClimate change levy slammed as stealth tax

Climate change levy slammed as stealth tax

The Federation of Small Businesses has hit out at the government over the climate change levy, which it says creates another 'stealth tax' on smaller businesses.

The FSB claims the CCL makes 88% of small businesses worse off, despite government claims that the tax is ‘fiscally neutral’.

John Holbrow, FSB environmental affairs chairman, said: ‘The climate change levy discriminates against smaller firms and is particularly hitting manufacturers and hoteliers who are already struggling.’

According to a report from the FSB, firms with large workforces and low energy use, such as local authorities and big businesses, would be the winners because they have more staff eligible for an employers’ national insurance discount.

The report also revealed nearly half of businesses do not know whether they pay the levy, and even fewer are aware of its environmental objectives.

The levy was introduced in April 2001 and is imposed on taxable energy supplied to almost all non-domestic users – the FSB is lobbying for its abolition.

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