Please see here to read EIC’s recommendations for the 2018 Budget, to better protect the environment and promote the growth of the green economy.
To summarise our proposals:
- Environmental taxation should form a coherent framework which encourages businesses to act in a sustainable manner.
- There are numerous examples of the current environmental tax system creating perverse environmental incentives. A review is needed to identify these collectively and assess the lessons for how environmental tax policy is designed and implemented.
Specific tax proposals:
Air Quality
- VED should be reformed to reflect local pollutants as well as CO2.
- We support the changes to fuel duty differentials in last year’s budget on LPG and LNG, and would urge the government to maintain this to support low-emission fuels.
- End the allowance of red diesel for non-agricultural uses.
- All off-grid fuels should receive equal treatment under the CCL.
- Equalise the fuel duty on secondary liquid fuels and on alternative virgin fuels.
- Introduce a 5% VAT rate for products and services that reduce indoor air pollution.
- Introduce a 5% VAT rate for air quality sensors.
Resources & waste
- Move asbestos contaminated waste into the lower landfill tax bracket.
- We oppose moving organic waste into the lower tax bracket.
- We oppose the imposition of an incineration tax, and would instead advocate introducing a tax on virgin plastics, or VAT reductions for products containing a high level of recycled material.
- Consider introducing VAT reductions for repair services
Land development
- Land remediation tax relief should be increased and extended
Climate & energy
- Consider raising the Carbon Price floor to support the growth of the cleantech sector.
- Apply the 5% VAT rate to energy efficiency focused refurbishments.
