Chancellor to incentivise green behaviour

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

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,
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:

Darling to reveal budget eco-taxes

faces growing calls to deliver green budget

Related reading