Environmental tax and regulation

“Creating a more environmentally considerate economy”

In a bid to create a more environmentally considerate economy, the Government has introduced a range of policies and economic instruments designed to help bring business in line with the needs of the environment.

New initiatives to make polluters pay are likely to impact on businesses at every level and, while there are bound to be financial and cultural ramifications, reputations are also likely to be at risk.

The Government describes climate change as "probably the greatest long-term challenge facing humankind", and is using tax reliefs and incentives as tools to encourage environmentally sound behaviour. The climate change levy, the aggregates levy and landfill tax are now part of the reality of modern business.

Companies should also be aware of quasi-environmental taxes, such as road user charging, air passenger duties, and fuel and vehicle duties.

These new regulations may well be littered with risks but, with careful and strategic planning, businesses can harness the long-term opportunities that exist within the green economy and can reduce costs by effective use of the various incentives and tax reliefs that encourage and reward environmentally sound actions.

The challenge for business is to cut through the fiscal maze to understand and operate effectively in this new climate. To do this, businesses must answer some key questions, such as:

• Which (and how much) environmental taxes is the business liable to?
• Does the business actively manage environmental taxes?
• What new environmental taxes and regulations are expected in future and how should business plan for them?
• How do the Government's environmental taxes affect the business' commercial decision making?
• Is the business aware of environmental incentives, and is it taking advantage of them?

PricewaterhouseCoopers' Environmental Tax and Regulation Network is poised to help companies identify and find solutions to their environmental questions. Our specialists provide support and expertise designed to help companies find the most effective and sustainable way to be green.