Heat on companies for climate change

Green taxes as a percentage of total tax yield have actually fallen from 8.1 to 7.1 or £34.7 billion since the Labour government came to power in 1997. If just 1 of this amount £34.7bn had been invested directly into building wind farms enough electricity would now be generated to power a city the size of Sheffield!

Airport Passenger Duty has done nothing to greenhouse emissions and many believe a waste tax is merely a revenue-raiser rather than a targeted initiative to make any dent in the UKs carbon emissions.

For these reasons and perhaps to carry favour with voters Mr Darling is expected to turn to industry to take responsibility towards the climate. There is a raft of possibilities available to the Chancellor such as using the VAT system to greater effect possibly levying higher VAT on products with excessive packaging.

05 October 2007 Moneyextra.com

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