TaxCorporate TaxChancellor to incentivise green behaviour

Chancellor to incentivise green behaviour

The chancellor has been in talks to encourage more environmentally friendly behaviour through aviation tax changes and 'plas tax'

Airlines and supermarkets have spoken out about their fears on green taxes
that could be revealed in next week’s budget.

Ministers had warned retail chiefs that a new plastic bag tax labeled by some
as ‘plas tax’, would be imposed unless more was done to reduce the amount
generated.

The high street chains have agreed to enforce a 25% decrease by the end of
2008 however only a 14% increase has so far been achieved.

Tesco the biggest British retailer has remained defiant on charging for
plastic bags despite pressure to set the example. Asda has a ‘bag on request’
initative and Marks & Spencer has announced a 5p bag charge in its food hall
with B&Q following suit.

Aviation is also forecast to receive radical changes to its tax structure in
the next budget,
The
Times reported.

Darling is said to be considering charging tax on flights regardless of the
amount of people that are on it. Aviation sources are even speculating that
there could be plans to relate the amount of tax paid to the amount of emissions
produced by an aircraft.

This is considered a good move by environmentalists’ who believe this will
encourage airlines to replace old, high emission aircrafts with newer more
efficient ones, which are considered to be up to 25% better on fuel economy.

The chancellor also has plans to now tax private jets and cargo flights which
currently avoid paying taxes and the government hopes to increase revenue from
aviation by 25% to £2.5bn.

Goldman Sachs said yesterday that ‘this seems a fairer system and it
discourages empty flights and also aligns taxes and emissions more precisely.’

Further reading:

Alistair
Darling to reveal budget eco-taxes

Chancellor
faces growing calls to deliver green budget

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson