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Treasury 'pockets extra £10bn'
from green taxes
UK
Daily Mail
Tuesday Sept 3, 2007
Billions of pounds are being raised in green taxes with little
or no reward for environmentally-friendly consumers, according
to two new studies.
Each British family is paying £400 more in green taxes
than it would cost to cover its carbon footprint, according to
the TaxPayers' Alliance.
It says green taxes raised £21.9billion in 2005 - £10billion
more than the social cost of that year's carbon emissions of £11.7billion.
"We need more honesty about the costs of extra green taxes
when British taxpayers already pay some of the highest pollution
charges in the world," said Matthew Elliott of the TaxPayers'
Alliance.
And a poll by YouGov for the group showed that nearly two-thirds
of people think politicians are using the green issue as an excuse
to pull in more cash.
(Article continues below)
A separate study revealed that the Government gives back in tax
breaks just two per cent of the money it collects through environmental
taxes.
The Treasury receives around £29.3billion each year in
green taxes such as air passenger duty, accountants UHY Hacker
Young said.
The Government raises £25.1billion in fuel duties and takes
in £2.1billion in air passenger duty each year.
But it gives just £254million back in lower vehicle excise
duty for people who drive environmentally-friendly cars.
And the total it hands back each year to environmentally-friendly
taxpayers is £549million.
UHY Hacker Young tax partner Roy Maugham said: "It's surprising
just how lopsided the Government's approach to green taxes has
been over the last ten years.
"At the moment it's all stick and very little carrot."
Dave Timms, from Friends Of The Earth, said: "The greater
tax breaks are still being offered to those involved in polluting
activities such as the air industry and road construction."
A Treasury spokeswoman disputed the studies. She said: "The
Government's definition of environmental taxes includes those
taxes that are designed to primarily have an environmental impact
- the climate change levy, aggregates levy and landfill tax.
"We make clear, for example, when setting fuel duty rates
that the Government takes into account a range of factors, including
costs of motoring such as congestion, and the need to maintain
sound public finances."
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