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UK 'not convinced' about green taxes


Date: 03 September 2007

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Businesses and consumers in the UK are not convinced of the environmental intentions behind the government's 'green taxes', which includes fuel duty paid by the courier industry.

A report released today has cast further doubt on the effectiveness of financial incentives to reduce carbon emissions in Britain, by suggesting that public opinion does not back such measures.

According to the Taxpayers' Alliance (TPA), green taxes such as fuel duty, air passenger duty and landfill tax actually accrue almost double the amount of money needed to offset the nation's carbon footprint.

During 2005, the report claimed the 'cost' of the UK's CO2 generation was £11.7 billion. Despite this, the alliance said that the government collected £21.9 billion in taxes.

Comparing the amount paid by haulage firms and individual motorists, the study said that the revenue generated by fuel duty and vehicle excise duty was between three and 40 times higher than that required to cover emissions levels.

And a YouGov poll found that a large proportion of Britons believe it is this revenue that is driving politicians' commitment to green taxes, rather than environmental objectives.

Some 63 per cent of respondents said they agreed with the statement: "Politicians are not serious about the environment and are using the issue as an excuse to raise more revenue from green taxes."

"We need more honesty about the costs of extra green taxes when British taxpayers already pay some of the highest pollution charges in the world," TPA chief executive Matthew Elliott commented.

Indeed, the Road Haulage Association last month called upon chancellor Alistair Darling to defer the autumn increase in fuel duty announced in this year's Budget.

Chief executive Roger King said: "All hauliers have to accommodate the world price of oil but only the UK singles out its own hauliers for punishment by taxation."

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