Appetite for change - Accountancy Nieuws
Appetite for change - Accountancy Nieuws Appetite for change - Accountancy Nieuws
Section 4How can policies find support?The success with offsets in Denmark and Sweden occurredbefore the financial crisis. In this period of enormousgovernment deficits, it is probable that governments will needto increase taxes. The best chance for garnering businesssupport for new taxes is to combine them with either offsetsor some measure of hypothecation.Business executives are unlikelyto support environmental taxes...which are designed primarily to raisegeneral revenue.Figure 22Taxes are paid by many organisations, but effectiveness is felt to be lowVehicle Excise DutyFuel DutyLandfill TaxAir Passenger DutyClimate Change LevyCongestion ChargeAggregates LevyWhich of the following specific taxes are paid by your organisation?Base: UK only (50)Landfill Tax (38)86%84%76%66%64%52%8%18 29 37 16Climate Change Levy (32)25 22 47 6Business executives are unlikely to support environmentaltaxes, such as the UK’s air passenger duty (APD), whichare designed primarily to raise general revenue. In 2007UK business leaders rated the APD the least effectiveenvironmental tax, 18 and they remain sceptical today. Onlynine per cent of UK businesses currently believe the APD iseffective (see fig. 22 opposite). When increases in the APDwere announced recently, Willie Walsh, the chief executive ofBritish Airways, was quoted as saying: “The Government’sown figures show that British airlines already meet theirenvironmental costs, so there can be no ‘green’ justificationFuel Duty (42)Congestion Charge (26)Aggregates Levy (4)Vehicle Excise Duty (43)Air Passenger Duty (33)33 29 29 1038 31 31Not at all effectiveFairly effective75 2540 40 2158 33 6 3Not very effectiveVery effectiveHow effective do you feel the following specific taxes have been in changing yourorganisation’s environmental behaviour? Base: UK only (base sizes in brackets forthose paying each tax)18Saving the Planet 2007 - PricewaterhouseCoopers LLP, UK32 Appetite for change. PricewaterhouseCoopers.
pwc.com/appetiteforchangefor these additional taxes.” 19 The UK government has, in fact,already concluded that the APD did not produce significantreductions in air travel. 20Figure 23Majority feel that the ‘giving back’ to the environment from taxes is importantTaxes that are labelled and promoted as ‘environmental’ arequalitatively different than those designed to raise generalrevenue. Pollution taxes not only compensate for the failure ofthe market to price pollution, as on a more fundamental level,the goal is to reduce pollution.If a pollution tax is not offset by a tax reduction, it isreasonable to expect that governments should seek to gainthe maximum environmental benefit by investing the fundsinto further pollution reduction measures, which supportthe overall policy objective. Hypothecated (or reserved) taxproceeds could fund tax and other incentives as well asdirect investments that balance the perceived penalties of taxcharges and thereby generate support for and confidence intax policy.TotalEuropean UnionNorth AmericaBrazil, Russia,India and China4 7 27 615 8 30 575 11 37 452 4 16 78Between 1990 and 2005, Denmark reduced per capitaCO 2emissions by 15 per cent, using a combination oftaxes, incentives and significant investments in renewableenergy (especially wind power) that help provide affordablealternatives to heavily taxed coal power. 21 Eighty eight percent of businesses would like to see similar investments andincentives in their regions; however, only 31 per cent areconfident that monies raised from environmental taxes aredirected to environmental initiatives (see fig. 23 opposite).Other1 6 27 64Not at all importantFairly importantNot very importantVery importantHow important do you feel it is for business to see that monies raised fromenvironmental taxes and regulation are being/would be directed to ‘green’/environmental projects and initiatives? Base: Total (654)19Budget 2009: how changes to Air Passenger Duty will affect passengers. By Charles Starmer-Smith, Telegraph.co.uk 22 Apr 200920Source: Antony Seely, ‘Air passenger duty: introduction’, House of Commons Library, Standard Note SN/BT/413, Last updated 16 June 200921Charles Komanoff, “Revenue Recycle: Lessons (or not) from Europe,” www.carbontax.org, 25 March 2008Appetite for change. PricewaterhouseCoopers. 33
- Page 1 and 2: Appetitefor changeGlobal business p
- Page 3: ForewordMark SchofieldGlobal Leader
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pwc.com/appetite<strong>for</strong><strong>change</strong><strong>for</strong> these additional taxes.” 19 The UK government has, in fact,already concluded that the APD did not produce significantreductions in air travel. 20Figure 23Majority feel that the ‘giving back’ to the environment from taxes is importantTaxes that are labelled and promoted as ‘environmental’ arequalitatively different than those designed to raise generalrevenue. Pollution taxes not only compensate <strong>for</strong> the failure ofthe market to price pollution, as on a more fundamental level,the goal is to reduce pollution.If a pollution tax is not offset by a tax reduction, it isreasonable to expect that governments should seek to gainthe maximum environmental benefit by investing the fundsinto further pollution reduction measures, which supportthe overall policy objective. Hypothecated (or reserved) taxproceeds could fund tax and other incentives as well asdirect investments that balance the perceived penalties of taxcharges and thereby generate support <strong>for</strong> and confidence intax policy.TotalEuropean UnionNorth AmericaBrazil, Russia,India and China4 7 27 615 8 30 575 11 37 452 4 16 78Between 1990 and 2005, Denmark reduced per capitaCO 2emissions by 15 per cent, using a combination oftaxes, incentives and significant investments in renewableenergy (especially wind power) that help provide af<strong>for</strong>dablealternatives to heavily taxed coal power. 21 Eighty eight percent of businesses would like to see similar investments andincentives in their regions; however, only 31 per cent areconfident that monies raised from environmental taxes aredirected to environmental initiatives (see fig. 23 opposite).Other1 6 27 64Not at all importantFairly importantNot very importantVery importantHow important do you feel it is <strong>for</strong> business to see that monies raised fromenvironmental taxes and regulation are being/would be directed to ‘green’/environmental projects and initiatives? Base: Total (654)19Budget 2009: how <strong>change</strong>s to Air Passenger Duty will affect passengers. By Charles Starmer-Smith, Telegraph.co.uk 22 Apr 200920Source: Antony Seely, ‘Air passenger duty: introduction’, House of Commons Library, Standard Note SN/BT/413, Last updated 16 June 200921Charles Komanoff, “Revenue Recycle: Lessons (or not) from Europe,” www.carbontax.org, 25 March 2008<strong>Appetite</strong> <strong>for</strong> <strong>change</strong>. PricewaterhouseCoopers. 33
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