GREEN TAX.pptVIP

KAO XIONG The Founder: County bureau of public finance The Reason : CO2 emission amount: 1st in the world The Object: The firms which emit CO2 more than 10,000 ton a year The principle: Progressive taxation CO2 emission amount 2 million ton: $50/ ton 2~4 million ton: $ 60/ ton 4 million ton: $ 70/ ton 10 million ton: $100/ ton ASSESSED BENEFIT 2.88 billion NT And the taxation from CSC(中鋼)，CPC(中油) and Taipower(台電) accounts to 2.8 billion NT. e.g. CSC: 21.78 million tons of C02 a year? 1.7 billion NT Hua Lian: 1. 10,000 ton: $50 per ton 2. Assessed Benefit: 6 hundred million NT a year Yun Lin: 1. 100,000 ton: $100 per ton 200,000 ton: $ 200 per ton 2. Assess Benefit: 9 billion NT a year THE OBJECTION From the labour union: “Imposing green tax will block the development.” e.g. Taipower If the draft passes, they will have to pay more than 6 hundred million. MAIN CONFLICTS Should the carbon tax be levied by the central or local? Equity: If the tax is levied by the central From the labour union: It will block the development. PROBLEMS AND SOLUTIONS ON IMPOSING GREEN TAX-(1) 1. The Taiwan government has imposed environment tax to increase tax revenue but improving the environment should be the priority of green tax not increased revenue. →Ans: We can follow the examples of countries which have been imposing green tax for years. 2. The public may think they are burdened with a new tax, also imposing more tax may lead to inflation. →Ans: Tax shifting PROBLEMS ON IMPOSING GREEN TAX-(2) 3. Imposing a green tax may bring a heavier burden on those with low income. →Ans: Governments should prevent double taxation; or design appropriate compensation plans to specific individuals or industry. 4. Imposing a green tax may have a negative effect on the taxed goods industry which means that the eco