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Nice Theory: Sales Tax Reductions on Green Products

http://www.reuters.com/article/environmentNews/idUSL2156854220080321

France and Great Britain have submitted to the European Union a proposal to cut sales tax on green products to fight climate change. Although the chief EU environmental policy official is backing this idea, it is facing strong opposition from some other countries and EU officials.

"I support it. I think it's a good idea. I hope ... it will materialize," EU Environment Commissioner Stavros Dimas said in a BBC interview on Friday.

The European Commission has the sole right to propose changes to the VAT system, and any alterations would require the approval of all 27 EU governments.

Brown and Sarkozy believe that lower value-added tax on environmentally friendly fridges, dishwashers, electronic goods, cleaning materials, light bulbs and insulation could spur people to buy products that use less energy.

The EU has agreed to cut greenhouse gas emissions to 80% by 2020.

Reuters; March 21, 2008

Submitted by B. Shapiro

 

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This page contains a single entry published on March 21, 2008 3:00 PM.

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