A shift from traditional taxes on income and profits to new taxes on the consumption of natural resources will save money and create employment, according to the Environmental Pillar of Social Partnership group.
In its pre-budget submission to Government, the group, which represents environmental NGOs, says no economic decision should be made "without first assessing the environmental consequences of that action".
“Where taxes are applied they must be progressive and just. Any new taxation should not be based on cyclical sectors of the economy that leave the exchequer vulnerable”, said Michael Ewing, pillar co-ordinator said today.
The submission includes several proposals for new taxes including a ‘tax and share’ mechanism that rewards those using the least carbon and a tax on land in the form of a "Land Value Tax".
The group claims a land tax would "incentivise improved use of land to generate income, deter land hoarding, and bring about the rejuvenation of derelict buildings and so-called brownfield sites in towns".
Taxation on paid work, according to the group, should be shifted to taxes on resource use and pollution. The paper recommends the "polluter pays" principle should be expanded to a tax on "products that cannot be fully and easily recycled, pollutants emitted from industrial facilities, and excessive product packaging".
Revenues collected from these measures and others from taxes on resource use and pollution, should be "ring-fenced" to fund activities and employment in areas that would "protect and enhance the environment", it said.
“This submission shows that taxation can be used to incentivise employment opportunities and activities that build resilience against the impending shocks caused by global trends in climate change, competition for cheap energy, and increasing food security needs,” concluded Mr Ewing.
In April 2009, Minister for the Environment John Gormley announced the inclusion of environmental groups as part of the Social Partnership process to "ensure that economic decisions have at their very core the concept of sustainability”.
