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Expert group ready with models for green tax reform

The expert group, which will provide input for a uniform CO2 tax as part of a green tax reform, has now submitted its first interim report. The government will now discuss the recommendations with stakeholders and the parliamentary parties.

A uniform CO 2 tax is a crucial instrument for achieving the ambitious goal of reducing climate-damaging emissions in Denmark by 70 per cent. until 2030.

With the agreement on a green tax form in December 2020, the government, the Liberal Party, the Radical Left, the Socialist People’s Party and the Conservatives therefore agreed that an expert group must shed light on possible models for how the tax can be introduced.

The expert group is now ready with its first interim report.

The report presents three devices of the CO 2 tax system, each of which contributes approx. 3.5 million tonne reduction in 2030 with a view to meeting the 70% target.

“The government’s ambition is clear. We want a new and ambitious tax on CO 2 , which will ensure that the companies that pollute the climate pay for their own emissions. The Government thanks the expert group for the thorough work on the first interim report. It is a key input to the forthcoming green tax reform, ” says Minister of Taxation Jeppe Bruus.

“A uniform CO 2 tax is a key tool on the way to meeting Denmark’s ambitious climate goals. It must be more expensive to pollute in Denmark, and Danish companies must have a much stronger incentive to switch from black to green. With the recommendations of the expert group, we now have a solid basis for starting political discussions. It will not be easy, but this can and must be done, ” says Climate Minister Dan Jørgensen.

On the basis of the expert group’s first sub-report, the government will now discuss the recommendations with stakeholders in the field and the political parties.

The expert group’s final report is expected in the autumn of 2022.

Among other things, it must also make proposals on how a green tax reform can reduce agricultural emissions and thus contribute to meeting the agricultural agreement’s goal of further reductions.

Source kefm.dk

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