Call to address green tax 'imbalance'

The amount of eco-taxes paid by businesses and individuals in the UK far outweighs the value of green reliefs offered by HMRC, according to UHY Hacker Young.

The accountancy company has called on the Government to redress the imbalance, citing research that suggests green tax breaks are equivalent to 3.5% of the amount raised in eco-taxes: in 2009-10, the Revenue took £31.6 billion and gave back £1.1 billion.

‘At the moment it’s all stick and very little carrot. Environmentally conscious taxpayers deserve a fairer reward,’ said UHY Hacker Young tax partner Roy Maugham, who expressed concern that the newly established Office of Tax Simplification (OTS) will scrap eco-tax reliefs as part of its project to simplify the tax system.

‘The Government should consider ring-fencing green tax reliefs from [the OTS’s] remit,' he added, going on to question whether the ‘the green agenda is being hijacked simply to swell Treasury coffers. It’s very easy for the Government to relentlessly raise tax under the socially acceptable guise of fighting climate change.

‘Ministers could demonstrate genuine intent by freezing green taxes while significantly boosting green tax reliefs,’ said Mr Maugham.

‘There is a misperception that green tax reliefs are much more widely available than they are in reality. As the Government gets to grips with the public deficit, there is a real risk that green tax breaks could be slashed.’

Categories: News , eco-taxes , green taxes , Office of Tax Simplification , OTS , reliefs , Roy Maugham