The level of tax paid in the UK on petrol is actually quite good because 1 - It reduces our carbon dioxide emmissions 2 - When there is an oil-price shock, it hits us much less as both the proportional effect is less and there is also the opportunity to freeze (as has been done) or ultimately reduce the level of tax to balance out price rise.
Having said that, I would like to see all carbon dioxide emmitting activities taxed appropriately (i.e. higher) to ensure we achieve contraction and convergence down to a sustainable level of emissions.
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timeasmymeasure
no subject
Date: 2006-08-11 12:32 pm (UTC)1 - It reduces our carbon dioxide emmissions
2 - When there is an oil-price shock, it hits us much less as both the proportional effect is less and there is also the opportunity to freeze (as has been done) or ultimately reduce the level of tax to balance out price rise.
Having said that, I would like to see all carbon dioxide emmitting activities taxed appropriately (i.e. higher) to ensure we achieve contraction and convergence down to a sustainable level of emissions.