EIC calls for a Green Budget to boost Clean Growth

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.




By |2018-10-18T11:28:06+01:00October 18th, 2018|EIC News|