.png)
.png)
Announcements made in the Pre-Budget Report on environmental taxes 'maintain the status quo on green taxation and incentive', according to John Manning of PricewaterhouseCoopers.
He acknowledged 'some welcome confirmation of longer term measures to provide investor confidence for investing in low carbon technologies', but went on to protest that the PBR does not 'signal how the Government will use the tax system in the longer term to either incentivise green behaviour or penalise carbon intensive activity'.
Mr Manning added that the Treasury 'continues to tinker with marginal changes, such as air passenger duty, without giving a clear signal on how carbon will be priced for the 50% of the UK carbon economy, which is not covered by the EU emissions trading scheme'.
The PBR made a number of announcements gearing the tax system to environmental ends, reversing the proposed abolition of air passenger duty for a 'per plane' aviation levy, and continuing to encourage the transition to lower emissions cars by relating all vehicle tax measures to CO2 emissions.
Fuel duty increases of 2p a litre will apply from 1 December, and the levy will rise again in April 2009 and April 2010.
