ICAEW outlines stance on green taxes

News Article - Monday, September 24, 2007

filed under: Business

The Institute of Chartered Accounts in England and Wales (ICAEW) has stated that taxes should only be defined as 'green' if they reduce pollution.

Speaking at a meeting at the Liberal Democrats Conference in Brighton, Michael Izza, chief executive of the ICAEW, said that a green tax ought to either generate revenue to be spent on reducing pollution or tax an environmentally-unfriendly action.

"If its aim is purely to raise revenue, but it does not effectively reduce carbon emissions, then we do not think that the tax amounts to a green tax and that the public perception of the tax will be compromised," Mr Izza argued.

A green tax may not generate a great deal of revenue, but can reduce pollution and influence behaviour through its implementation, he added.

Peter Penneycard, tax partner at accountancy firm PKF, recently said that the government should provide more tax breaks to encourage private investment in environmental technologies, the Herald reports.

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