Report on environmental impact of tax policy, says CIOT

The Treasury should report on the environmental impact of each of its tax measures from now on as part of the effort needed by the government to ensure the UK meets its net zero 2050 target says the Chartered Institute of Taxation.

The institute is calling for the inclusion of environmental impacts as a compulsory standalone category for tax information and impact notes on all tax policy proposals. Currently there is no mandatory requirement to show whether environmental impacts have even been considered.

Jason Collins chair of CIOT’s climate change working group said: ‘COP26 showed the urgent and huge breadth of work needed by governments to tackle climate change. The Treasury must harness the power of these tax impact assessments to help the government develop tax policies that support the achievement of net zero.

‘We are concerned that environmental and climate change risks...