Brown set to implement plastic bags tax

Link: Green tax on shopping bags considered

Both tax hikes will help the chancellor fill the £7bn hole in funding he faces. It will also please green lobbyists who have long been championing the changes to help increase recycling.

The announcements are expected to come in next months pre-Budget report, according to The Guardian.

Estimates as to possible revenue from the changes range from £300m to £1.2bn a year depending on how hard-line a stance Brown ultimately takes.

Tax experts have long been expecting the chancellor to introduce stealth tax rises to raise extra revenue while removing himself from controversial consumer and direct corporate tax hikes.

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