Survey: Tax and the environment

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Survey: Tax and the environment

Tax can help protect the environment

Take our short anonymous survey to share your views on the relationship between tax and the environment, discussing perceptions, attitudes and the necessary next steps to fight environmental damage through tax policy.

Take ITR’s survey here on tax and the environment. Share your views on the robustness of existing environmental tax policy, the responsibility for addressing environmental damage and what needs to happen next. Your answers will be kept anonymous.

Click here to participate in the survey

Environmental tax policy has become increasingly significant in the past few years. Individuals, industry, national governments and international organisations have started to tackle the issue and are figuring out the role tax has to play.

Pressure on lawmakers and a recognition of pollution has translated to stronger stances on protecting the environment, following repeated failures to acknowledge the issue on a national and international level.

The EU is looking to broaden its carbon-pricing scheme, the largest in the world. China is in the process of introducing a new system. US presidential candidate Joe Biden, who supported carbon prices as vice-president in the Obama administration, will do so again in his upcoming campaign.

A push for environmental taxation has even been seen in the US with discussions surrounding the Green New Deal and the Baker-Shultz proposal. This was fortified by US companies publicly supporting a version of a carbon tax.

The stakes are now higher than ever. The pandemic has derailed the global economy and risks forcing countries to focus solely on managing the immediate crisis and the aftermath. However, COVID-19 provides a unique opportunity and may accelerate the environmental policy trend.

The circumstances are unique. Energy prices have plummeted because of slipping demand, making it easier to remove fossil fuel subsidies and introduce taxes. Interest rates around the world are low and will likely remain low in the long-term, reducing the cost of investment, including greener projects. Additionally, money to address budget holes will have to come from somewhere. Why not make it green?

As with any large shift, there are setbacks and costs with moving away from the status quo. Environmental concerns feed into slowing corporate investment in new technologies despite countries introducing tax incentives to cash in on the digital economy growth. This needs to be reconciled.

Many governments will include green measures in their recovery plans and international organisations see the road to recovery as a chance to rebuild a greener community. An overhaul of tax policies will be necessary and businesses could reduce their carbon footprint under a circular economy that supports an environmental strategy.

The task may seem insurmountable, but we have no choice but to try. Tax could be a key tool in addressing this global issue.

As part of the autumn theme of tax and the environment, ITR hopes to find out how the tax community feels about environmental taxation at a turning point for both the global tax landscape and the environment.

Take our survey before it closes and we will share the results in our autumn issue of the ITR magazine and online. Click here to take the survey.



more across site & bottom lb ros

More from across our site

Thin capitalisation rules limit the amount of debt deductions that can be claimed but regard must also be given to other income tax law provisions, the ATO said
Police may be inside the Sydney office for ‘several days’, PwC Australia’s chief executive officer said
The source of additional remuneration received by PwC Australia CEO Kevin Burrowes had been the subject of much parliamentary scrutiny
The Independent Schools Council is bringing litigation against the UK government for what it calls an ‘unprecedented education tax’
But the firm said that ‘difficult market conditions’ led to a slowdown in Asia Pacific; in other news, OECD begins Thailand accession process
The move will provide certainty to taxpayers and reduce the risk associated with pricing transactions for TP, according to India’s Ministry of Finance
Pia Honkala, co-head of Aibidia’s operational TP product, tells ITR how her company works in harmony with advisers like the ‘big four’ to revolutionise clients’ processes
The UK is ‘heading to Scandinavia’ as its tax burden increases and isn’t creating an attractive environment for a wave of investment, experts have told ITR
Japan, South Korea and Germany increased their R&D tax budgets at a much greater rate over a 14-year period, say RCK Partners and the London Business School
Under the proposed directive, multinationals with numerous EU presences would have to make only one filing to comply with pillar two
Gift this article