The Confederation of British Industry, the U.K.’s biggest business lobby, has urged the government to revamp its environmental taxes to make them simpler.
The number of green levies has tripled in the last two decades and contribute about 8 percent of the country’s total tax revenue, the CBI said in a report published today.
“Well-designed, environmental taxes can be a useful tool to help firms improve their performance and unlock significant business investment,” Ian McCafferty, chief economic adviser at the CBI, said in an e-mailed statement. “However, poorly planned environmental taxes have damaged businesses and made the U.K. tax system less attractive to would-be investors.”
The CBI set out six recommendations about how the government can improve environmental taxation. Those include ensuring simple regimes that provide certainty to business. It also urged the government to scrap its tax known as the Carbon Reduction Commitment, and instead oblige companies to report on carbon emissions.