A closer look at green levy
What is a green levy?
The government is making different efforts regarding pollution. Unfortunately, many companies and businesses are involved with pollution and carbon emissions. So, they have this tax called the green levy on pollution contributors. For example, we have taxes that we encounter on fuel-inefficient vehicles. If you may have noticed, the green levy is often heard when talking about businesses related to this. The government and the green levy encourage entities to use environmentally friendly alternatives instead of inefficient energy sources.
Others refer to green levies as eco-taxes. Those who support these say that they are a few ways on how governments act on market failures. It should consider the environmental costs regarding the use of nonrenewable resources and energy inefficient practices. Have you heard of Pigovian taxes? If they are, it's because green levies are modified versions of them. The goal is to connect private enterprises with the social burden they generate because of their business operations and practices.
The main goal of green levies
For those who did not know, energy sources like oil and coal are very harmful to the environment. But why should we use them when there are other alternatives like wind, geothermal, solar, and hydro sources? The goal is to use the latter instead of those that will deteriorate the environment further. Pollution is one thing, and the companies that contribute to it are another. It is not easy to eliminate business practices that have been present for a while now. After all, some company giants that generate massive carbon footprints already made a name for themselves. Some are so huge that it takes time to change their usual operations. For example, it may take a while before some can change from nonrenewable resources to renewable ones.
What can the government do?
Given all the things we mentioned, the government thought of applying green levies to carbon taxes. It is a system where private entities must pay fees depending on how much carbon footprint they expel. Advocates of these plans argue that these taxes can replace the existing ones like corporate, payroll, property, and land value taxes.
Some people are doubtful.
If these taxes mean well for the environment, then why are there people who oppose them? First, we stress that people have different opinions and beliefs. Some may agree, and some may not because they are unsure these taxes would be for the best or the worse. But how can they hurt anything or anybody? Indeed, green levy taxes mean well, but they can actually damage the poor. These people will have lesser money left from their income while consuming more. Aside from that, fat taxes can also create a massive negative impact on the poor.
Why won't they support green levy taxes?
Another reason why other
critics disagree with green levies is
because they have the same amount as stealth taxes hurt consumers. How? The
vehicle prices increase, but it does not really help a lot in reducing
emissions. Critics say that instead of forcing corporations and wealthy people
to switch environmentally friendly resources, they get away with paying green
levy taxes. On the other hand, the poor feel the effects of climate change and
pollution more, but they cannot get away with it.
