TaxCorporate TaxBusiness bosses slam ‘inept’ eco tax

Business bosses slam 'inept' eco tax

Business leaders have hit out the 'flawed design' of the government's new energy tax, which they claim has hit the competitiveness of half the UK's manufacturers.

Link: Climate change levy slammed as stealth tax

The Confederation of British Industry and the Engineering Employers Federation claim the climate change levy has left some companies with huge tax bills while others are better off, regardless of whether they have taken steps to improve energy efficiency.

‘A laudable objective has been tarnished by inept implementation,’ Digby Jones, CBI director-general said.

The levy is intended to encourage firms to use energy more efficiently, with revenues mainly returned to businesses through reduced national insurance contributions.

But the CBI report showed the manufacturing sector had paid out an extra £143m in the first year of the tax, with 57% of manufacturers saying they were less competitive as a result.

Jones said: ‘This survey shows the climate change levy is damaging key sectors of the UK economy and driving jobs abroad – it’s crazy to pile on extra costs when manufacturers are struggling to remain competitive, and all employers are bracing themselves for next April’s increase in national insurance contributions.’

His criticisms were supported by the Liberal Democrats – Vincent Cable, the party’s trade and industry spokesman said: ‘The climate change levy must be replaced by a proper carbon tax which would apply across the board on energy raw materials and be related to the amount of carbon dioxide they create. Businesses would choose a carbon tax over the flawed climate change levy.’

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

3m 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