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Green Party blame Government for poor image of pollution taxes

The Green Party is blaming the Government for poor image of pollution taxes and claims that revenue should be used strategically to save people money.
The Green Party has dismissed claims by the Taxpayers’ Alliance that the UK is paying too much in resource and pollution taxes, and has slammed the government for failing to use tax revenue strategically to save people money on fuel and bills.
Green Party Principal Speaker, Caroline Lucas MEP, said: “Tax should be about trying to change behaviour and not just about abstract revenue raising. And taxes on activities that use fuel and resources are only effective if the government provides other options for people to switch to: for every fuel tax there should be real provision of public transport; and for every levy on household bills, insulation and other energy-saving measures should be provided. It’s the government’s fault that people have lost faith in green taxes. Their money goes into a black hole and they don’t see the benefits. Greens would bring in measures like making free insulation available to everyone, which would dramatically reduce fuel bills for families, and reduce the amount they pay in green taxes as well.
It is also worth noting that the oil and energy companies are more than able to cut fuel costs for motorists and energy rates for households, but choose not to because high prices not only support their huge profits, but also encourage pressure groups to call for tax cuts, as we have seen today. While public transport, hospitals and schools cry out for investment, and with families paying more and more for the basics, oil and energy firms are posting record profits. If there is any spare cash in the fuel economy, it’s there. A windfall tax is urgently needed in order to invest in ways of cutting emissions and saving energy in the future.”
However the Taxpayers Alliance disagree and argue that Britain pays £19.6bn too much in green taxes.
New research from The TaxPayers’ Alliance (TPA) has revealed that green taxes are far higher than is necessary to offset the cost of UK carbon emissions. UN IPCC figures on the UK’s carbon footprint indicate British taxpayers pay £19.6 billion a year more than is necessary, while even the British Government’s own estimates indicate that we are paying £7.9 billion too much – money that taxpayers feeling the pinch of the credit crunch can ill afford.
Matthew Sinclair, a Policy Analyst at the TaxPayers’ Alliance and expert in green taxation, said: “Green taxes are set far higher than is necessary to pay for our carbon footprint, which loads an unfair burden onto hard pressed British families and businesses. With the credit crunch squeezing household budgets, people can ill afford this extra tax grab. It’s dishonest and unjust for politicians to wrap revenue raising tax hikes in a green banner. The Government are talking about raising taxes even further, but our conclusions show that green taxes should be kept as they are or cut.”
Simon McBride

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Author: Simon McBride, August 29, 2008
Filed under: General interest

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