A GOVERNMENT taskforce investigatingways of reducing business emissionsof greenhouse gases has endorsed anenergy tax on businesses in the UK.Lord Marshall, chairperson of BritishAirways, who headed the taskforce said:"My conclusion is that there probably isa role for a tax if businesses of all sizesand from all sectors are to contribute toimproved energy efficiency and helpmeet UK's emission targets."
His report recommends a system oftradable emissions permits for largebusinesses, alongside an energy tax withrevenues to be funnelled into energysaving schemes. Marshall said that therevenues from the tax would be investedin energy-saving schemes and technologies. He also urged the government tocome up with rebates for energyintensive users to reduce the overallimpact on these industries.
Lord Marshall said that the government should consider setting up a pilotemission -trading project to help UKcompanies and financial institutionsdevelop the expertise needed to lead aninternational scheme in the future.Some environmentalists feel that thepresent proposal of energy tax coversonly large companies. What is neededis to introduce a tax for small andmedium-sized companies to improvetheir energy efficiency, they say. Thesecompanies collectively account formore than 60 per cent of total carbondioxide emissions from business.
They say that the tax proposalshould be a "downstream" tax on thefinal use of energy by industrial andcommercial consumers. Tax ratesshould reflect the carbon content offuels, in an attempt to maximise theemissions savings.