- The Subcommittee on Environmental Taxation submitted its final report to the UN Tax Committee on 25 March 2025.
- The report includes an updated paper on carbon taxation and its interaction with excise duties, VAT, and income taxes.
- The paper has been refined for clarity and includes updated data, broader country coverage, and refined policy classifications.
- Emphasis is placed on fiscal trade-offs, the impact of excise duties, fuel subsidies, and VAT on carbon pricing.
- The role of income taxes in mitigating regressivity and promoting green investment is highlighted.
- Discussions on policy coherence and challenges for developing countries have been strengthened.
- Transparent tax policies are needed to support a low-carbon transition.
- The subcommittee suggests further consideration of other environmental taxes and their inclusion in broader fiscal reforms.
- Sector-specific guidance could be developed for tax aspects of fossil fuel subsidy reforms and other sectors.
- Addressing administrative and implementation challenges is important for efficient administration of environmental taxes.
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
