Budget hints at future green taxes
Yesterday's Budget speech has laid the foundations for future environmental taxes, according to PricewaterhouseCoopers.
Link: Budget 2004 special report
Barbara Bell, senior manager at PwC, said the government hinted at new environmental taxes to come in its announcement that it proposes to consult on the use of economic instruments to tackle diffuse water pollution
‘This consultation exercise will be followed with interest by farmers and others in industry and agriculture,’ Bell added.
Looking over the speech, Bell said there were no real environmental taxation surprises.
‘The announcement that the proposed lorry road user charge has been delayed by a further two years was only to be expected given the huge technological issues involved.’ Bell said.
She also said landfill site operators and environmental bodies would be pleased by the increase from 6.5% to 6.8% of the maximum credit claimable against a site operators’ annual landfill tax liability, ‘although some will argue that it does not go far enough’.
Furthermore, the climate change levy agreement arrangements are to be expanded so that a wider range of businesses may qualify.