HONG KONG, Sept. 6, 2012 /PRNewswire/ -- Policy makers and governments should not see environmental taxation as a cure-all, says ACCA (the Association of Chartered Certified Accountants) in a policy paper called Green Taxation in A Recession.
Due to the on-going global recession and economic uncertainty, governments are looking to environmental taxation as a possible way to bolster tax revenues. ACCA says that for this to happen successfully, governments need buy-in from business and their electorates.
Chas Roy-Chowdhury, author of the report and head of taxation at ACCA says: "Tax shifting to environmental taxation cannot both solve the environmental crisis and raise significant tax income long term. This is because a system aimed at reducing what it is taxing, if successful, will eventually destroy its own tax base."
ACCA's paper offers a number of recommendations about green taxation, asserting that first and foremost a global approach to green taxation is needed.
Chas Roy-Chowdhury explains: "Environmental taxes are an efficient but controversial way for governments to raise revenue. Most agree that making the polluter pay should be a principle of a modern tax system. But this needs to be done with care - especially to avoid companies relocating and taking the pollution problem with them."
Recommendations in ACCA's s paper include:
Chas Roy-Chowdhury adds: "ACCA questions how resilient environmental taxes will prove to be in the future. But we also believe that governments must use tax policy as an instrument of positive change by incentivising investment in new cleaner technologies across a wide range of industries.
"This can only be of benefit to business - it has to be remembered that cutting carbon usage can also create competitive advantage for business. Even in the midst of a financial crisis, consumers view environmental issues as important to their purchasing decisions and a business's credentials on environmental issues has a significant impact on consumer buying choices."
Chas Roy-Chowdhury concludes: "Environmental taxation, which was almost unheard of 25 years ago, is now being widely used to assist in the fight against climate change, with taxes around the world on everything from emissions trading, plastic bags to energy consumption, car use and waste disposal. Business understands that 'business as usual' is no longer an option; but to endure a competitive and attractive economy in which to invest, green taxes need to be, clear, credible and certain."
To read the full version of Green Taxation in a Recession, please visit: http://www.accaglobal.com/content/dam/acca/global/PDF-technical/tax-publications/tech-tp-gtiar.pdf
Notes to editors:
About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. As the first global accountancy body entering into China, ACCA now has over 22,600 members and 42,500 students, with 7 offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen, Hong Kong SAR, and Macau SAR.
Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accounting professionals bring value to economies in all stages of development. We aim to develop capacity in the profession and encourage the adoption of consistent global standards. Our values are aligned to the needs of employers in all sectors and we ensure that, through our qualifications, we prepare accountants for business. We work to open up the profession to people of all backgrounds and remove artificial barriers to entry, ensuring that our qualifications and their delivery meet the diverse needs of trainee professionals and their employers.
We support our 154,000 members and 432,000 students in 170 countries, helping them to develop successful careers in accounting and business, with the skills needed by employers. We work through a network of over 80 offices and centres and more than 8,400 Approved Employers worldwide, who provide high standards of employee learning and development.
