All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

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 from across our site

This week European Commission officials consider legal loopholes to secure minimum corporate taxation, while Cisco and Microsoft shareholders call for tax transparency.
The fast-food company’s tax settlement with French authorities strengthens the need for businesses to review their TP arrangements and documentation.
The full ALP model will be adopted through a new TP regime, which is set to boost the country’s investments and tax certainty.
Tax professionals have called on the UK government to reconsider its online sales tax as it would affect the economy at the worst time.
Tax professionals have called on companies to act urgently to meet e-invoicing compliance targets as the EU plans to ramp up digitisation.
In the wake of India’s ambitious 25-year plan for economic growth, ITR has partnered with leading tax commentators to discuss what the future will look like for India and for the rest of the world.
But experts cast doubt on HMRC's data and believe COVID-19 would have increased the revenue shortfall.
EY’s plan to separate its auditing and consulting businesses might lessen scrutiny from global regulators, but the brand identity could suffer, say sources.
Multinationals are asking world leaders to put a scale on carbon pricing to tackle climate change at the 48th G7 summit in Germany, from June 26 to 28.
The state secretary told the French press that the country continues to oppose pillar two’s global minimum tax rate following an Ecofin meeting last week.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree