Genuine environmental taxes must be revenue neutral

Both opposition parties are overtly promising to use so called "green" taxes to reduce the existing tax burden, whilst the Government are moving stealthily in the same direction.

The Lib Dems are suggesting that green taxes will fund a cut in the basic rate of taxation, whilst the Tories want to tax carbon emissions so they can "give money to families".

The ABD believes that, whatever the arguments for and against environmental taxation, a tax cannot be a "Green Tax" unless it is revenue neutral.

"The politicians are contradicting themselves", said the ABD's Nigel Humphries. "It's no longer about the environment at all - it's just political opportunism hiding behind a green smokescreen."

If carbon emissions are such a crucial issue, the purpose of "Green Taxes" should be to reduce them. The whole idea is that people change their behaviour to avoid paying the taxes, and so reduce emissions. As soon as political parties suggest using environmental tax money to fund tax cuts elsewhere, they have made the assumption that people will carry on emitting carbon and pay up.

The ABD urges all political parties to separate Green Taxes from the overall revenue equation - any money raised should be used to give incentives in the same area. Only then can they be properly discussed and evaluated on genuine environmental merit.