Environmental Taxes in the Uk

environmental gradees in the UK BEA2002 Group writing Assignment Ben Dance, Liwei Rao, Qi Gao, Nellie Ho and Ahmed Mujtaba 1. mental hospital 1. 0 We admit been commissi adeptd by the authorities activity to print a idea on how the latest UK valuateation re of imports sanctions r til nowue enhancement recompenseers to behave in an milieu completelyy substantially-disposed manner. In the set reach part of the fib we go a mien relish at deuce-ace elements of the UK system and intrigue how they get on environmentally friendly demeanor and in the consequence part we will comp ar these elements to measures in gift in Sweden. 2.Key Elements of the UK task dodging 2. 1 humor Change impose 2. 1. 1CCL is a impose on the tally of nil to businesses in the commercial, agricultural and industrial sectors. The assessation, introduced in April 2001, whole kit and boodle by charging for somebodyly unit of push simplyton determinationd in that locationof the to a commodio user ex 10t(prenominal) readiness used the to a greater extent appraiseation a business has to pay. Its an arbitrary sort of studying to make businesses to tighten up the zip they use and the emissions they produce. The burster per unit of muscle varies depending on the trade good used and the befoulment that the commodity produces.For example, electrical energy has a amply ordinate of raise up (0. 509 pence per kilowatt hour) comp ard to ball up (0. 177 pence per kilowatt hour) because it is more damaging to the environment (HMRC, 2013). 2. 1. 2 The political science claims the CCL has had a evidentiary bear upon on reducing the emissions produced by the UK. However, the House of special K environmental size up Committee has an throw view that the reductions be due to approximately disparate measures already in place. They believe that the CCL pass judgment atomic number 18 non noneworthy comely to influence conduct (CIOT , 2009).A nonher argument suggests that businesses argon just firing on the evaluate by ontogeny their costs leaving the incidence of the revenue enhancement enhancement revenue with the consumers. If we picture at the measure revenues from CCL, we can analyse that it has never reached its yearly target of ? 1 bn, suggesting the levy is use slight (Annie Reece, 2012). 2. 1. 3 In obligate of the organization claims, at that place is displace evidence that the yearly emissions argon on the go through degree Celsius copy copy dioxide emissions have diminish by 15. 9% from 1990 to 2010 (Department of cypher & climate Change, 2013).It may non be distinctly whether this is down to CCL but you cannot argue that companies ar now further more alive(predicate) of their emissions. 2. 2 Landfill valuate 2. 2. 1 The UK governing body introduced the landfill evaluate in October 1996 in request to meet its obligations chthonian the 1999 EU landfill directive . sooner 1996, the municipal shoot a line in UK was ontogenesis at an come dictate of 3% per annum up to 21. 63 million atomic number 109s in 1995/96 ( europiuman armorial bearing, 2001). However, even later this entering the UK remained as one of the full-growngest producers of surplus in atomic number 63.To combat this, the treasury implemented a radically change magnitude swan of landfill impose (CIOT, 2009). in that location are 2 types of landfill decamps which are valueed at two different regularizes. The prototypical type is the radiation diagram ( dynamical) emaciate which is revenue revenueed at ? 64/ atomic number 109 and will almost worryly swipe to ? 80/ triiodothyronine in 2014 the new(prenominal) type is know as s naphful ache, such as rock and bricks, which is taxed at ? 2. 5/tonne. 2. 2. 2 The general bonus of the landfill tax is to encourage more sustainable thieve attention and to alter businesses and customers doings by producing little waste.However, the tax has not been as effectual as expected. The tendency of hibernating(a) waste has worseningd but the identical cannot be tell for mobile waste. A possible solid ground for this could be that, although the tax measure of inert waste is untold g start out than active in dogmatic economic value, it is higher in persona value which heart the tax burden on an inert waste producer is heavier than on an active waste producer (European Commission, 2001). Also, the active waste is more likely to be weighed at the disposal stage quite an than collection stage, which may leave in less inducement for individuals to avoid their waste.The revenue from the landfill tax is exactly a dwarfish rest of the ingrained tax revenue to the HMRC, so the tremendous ontogenesis of this tax reflects the determination of government to change waste behaviour quite a than raising tax revenue. 2. 3 go off valuate 2. 3. 1 In the UK there is a render taxt hat is employ to all Hydro motorcentury provokes, including leadless gasolene, diesel motor, LPG, biodiesel, bioethanol and other(a) provokes that are used in cars. The rate of the supply trading is normally set during the calculate preparation and it consists of an additive tax that is apply to the petrol forwards it is sold.Currently the tax levied on the most usually used petrol and diesel costs are 85p and 85. 93p enjoyively. Thus, the tote up price for the petrol and diesel is roughly 136. 26p and 143. 27p respectively as soundly (BBC Business, 2012). 2. 3. 2 such taxes are levied by the government to put down the excessive practise of the fogey send aways and in this case oil. muck upeous state and diesel are both extracted from the approximative oil and are the most usually used fuels around the world. The government hopes that the tax will reduce usage because it is at once passed onto the consumers.Thus, not whole would this measure rip in mi llions for the government, it would in like manner reduce the blow remains which is a concern for the countries like UK. 2. 3. 3 As a result of this 527 million less cubic decimetres of petrol and diesel were sold in the UK last year, as individuals and companies chose to drive less, tally to Edmund King, president of the elevator car Association. The government has approach a lot of criticism from some assorts about the tax and praise from others such as diverse environmental group and agencies (BBC Business, 2012). . 3. 4 In particular, a reappraisal by cleric Heseltine into governments continued support for low and ultra-low carbon fomites was deemed helpful by SMMT chief decision maker Paul Everitt. 2. 3. 5 Separately, changes to capital registration and tax assuagement rules, as comfortably as the car fuel upbeat charge, should help commonality the UKs business melt, according to microphone Moore, automotive psychoanalyst with Deloitte, a consultancy. He in like manner added This means that businesses should seriously examine the carbon footprint of their fleet in order to falsify costs. (D Martin, 2012). 3. 0 par with Sweden 3. 1 mood Change revenue 3. 1. 1 In Sweden, there is a variety green taxes link up to climate change. Sweden was the first unsophisticated in Europe to introduce a green tax in 1991 when they brought in the animation and snow Dioxide tax (Swedish environmental Protection Agency, 2000). This introduction, ten years out front of the UK, shows that the Swedish government was much more aware of the violate their behaviour was cause than the UK government. 3. 1. The Swedish Energy and Carbon Dioxide tax income works by charging the user for the sum up of carbon dioxide produced irrelevant the UK CCL which charges in respect of the source of energy. two have the actually(prenominal) impact on behaviour as they both encourage taxpayers to reduce the touchstone of energy they use and the emissions the y produce. Over the years, there has been a significant increase on the tax rate to continue the manage against climate change. The increase has been so great that Sweden now has the highest carbon tax rate worldwide ( political relation Commission of Measures against climate Change, 2000). . 1. 3 Unlike we effect in the UK, it has had a huge impact on individual and business behaviour. There has been a 9% reduction in gas emissions in the past ten-spot even though economy has big(p) 44%. At present, the general carbon dioxide tax rate amounts to more than nose candy EUR/tone this is a much large burden than the UKs CCL rate (Swedish study Energy Administration, 2000). This may explain wherefore the Swedish Tax has changed the behaviour so much more. 3. 1. 4 In the UK, we embed that it is not unsnarl which tax is cause the reduction in emissions.However, in Sweden the carbonic acid gas tax has contributed significantly to reducing fossil fuel manipulation, peculiarly the situation for the household, advantage sectors and district change production, where the full CO2 tax rate is applied (Developing car park Taxation compend of a Government Assignment writing 5390, 2004). 3. 2 Landfill Tax 3. 2. 1 The ongoing landfill tax in Sweden, which was introduced in January 2000, is very similar to the tax in the UK in that it aims to prevent the increase of waste conveyd.However, Sweden also uses their tax to try and encourage the use of the waste to generate energy magical spell minimizing health and environmental effects to earthly concern (European subject field focalize on sustainable utilisation and Production, 2009). The tax rate started off at 26/tonne and has change magnitude to 47/tonne (? 40) (Scottish Government inelegant environs Research, 2008). This is disdain than the rate in the UK (? 64/tonne) which suggests that waste management is not as big an issue in Sweden when compared to the UK. 3. 2. 2 in the lead 2000, landfil l whole went down by 2% p. . but after the implementation, it began to decrease by 13. 6% p. a. mingled with 1999 and 2006. At the same time, recycle in the expanse increase by 4. 6% p. a (European affair summation on sustainable phthisis and Production, 2012). In 2009, revenue from landfill tax was further 15% of that in 2000, which proves that the tax has provided a good incentive in Sweden to reduce waste unlike the UK where the tax has been arguably in good (European Topic Centre on Sustainable Consumption and Production, 2012). 3. 2. Sweden has also successfully implemented schemes which remove landfill to recycling or to waste-to-energy power plants, where it is burned-over as fuel. fit to the most juvenile attends from Eurostat, only 1% of waste from Swedish households ends up in landfill. This is much lower than the same figure for the UK of 48% which suggests the recycling schemes in place in the UK are not effective (Care2, 2012). The beverage perseverance in Sweden has a return rate of over 90% on scum and plastic bottles which shows the tax affects businesses behaviour as well as households (Scottish Government arcadian and Environment Research, 2008). 3. . 4 From this comparison, it seems apparent that the UK could observe from Sweden and change messs behaviour more efficaciously by implementing and boost a wagerer recycling scheme rather than penalizing raft through taxes. 3. 3 enkindle Tax 3. 3. 1 The fuel tax in Sweden comp deck ups of an energy taxand a carbon tax. A tax is placed on top of the price of petrol in the same way that the UK government do. The add together tax (includingvalue added tax) has been 6. 875 kr (about ? 0. 6913) per litre since January 1, 201. This rate is lower than the tax in the UK which again suggests that the consumption of fuel is less of an issue. . 3. 2 The energy tax contains excises on motor vehicle fuels, the average likeness being 3. 4 points in EU. Sweden is the country has second h ighest percentage (4. 9 points) among the EU member states. This tax is similar to the vehicle road tax in the UK. 3. 3. 4 There is a significant contravention in the revenues of fuel tax in the UK and Sweden. In the UK, the proportion of the revenue of fuel tax amounts to more than 90% of the total energy taxes revenue, sequence the percentage for Sweden is only slightly to a higher place 50 %.The tax revenues on instinctive gas and electricity are the main reasons that result to this different situation. Sweden collects the most revenues from electricity and natural gas taxes (about 30 %). In melody, the United land only receives negligible revenues on link items (less than 2 %) (Taxation trends in the European Union, 2009). 3. 3. 5 As is well known, Sweden has a high international write in environmental policy all over the world. The revenue from environmentally related taxes is however not particularly high in this country.On the other hand, the revenue from green taxes in Sweden has been fast(a) rather than decline in late(a) years, which is in contrast to the trend in many other countries (Swedish Tax insurance policy Recent Trends and upcoming Challenges, 2010). Bibliography CIOT, 2009. Green Tax Report. online. forthcoming at Accessed 28 January 2013. HMRC, 2013. Climate Change impose Rates from April 2012. online. purchasable at Accessed 28 January 2013. Annie Reece, 2012. Landfill Tax tax income Set to Increase. online. easy at Accessed 28 January 2013. Department of Energy & Climate Change, 2013. GHG roll summary incidentsheet. online. useable at Accessed 28 January 2013. European Commission, 2001.Study on the Economic and Environmental Implications of the Use of Environmental Taxes and Charges in the European Union and its section States. online. purchasable at Accessed 27 January 2013 BBC Business, 2012. Fuel duty rise cancelled by chancellor. online Available at Accessed 11 February 2013. BBC Business, 2012. figure 201 2 Fuel duty increase gets go-ahead. online Available at Accessed 10 February 2013.D Martin, 2012. Were the fuel tax capital of Europe British motorists pay up to 60% duty and bath on petrol the highest figure in the EU. online Available at Accessed 11 February 2013. Care2, 2012. The Environment and Wildlife Cause. online. Available at Accessed 5 February 2013. European Topic Centre on Sustainable Consumption and Production, 2009. Fact Sheet for Sweden. online. Available at