For months industry have called for clarification of what is considered to be an environmental tax. The treasury have now announced that there are three requirements an environmental tax must meet:

  • To directly link to the government’s green objectives
  • To encourage positive behaviour
  • To raise taxes for more polluting behaviour

Vehicle excise duty, fuel duty and air passenger duty are not deemed environmental tax.
For a list of current taxes which are considered environmental see the Accountancy Age website.

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