Businesses believe they are being hoodwinked over green taxes, according to research from accounting group UHY Hacker Young.
It found that 9 out of 10 businesses believe that the government is not using the money to help climate change. Instead they believe that it is going towards shortfall in public finances or projects such as the Olympics.
To prevent this from happening 91% of businesses would like to see green taxes ring-fenced into a fund that will only tackle climate change. Figures from the treasury enforce this as they show the government raises £29.3bn in green taxes yearly but only gives back £549m in green tax breaks.
In addition, the study of 245 businesses, found that 56% of them believe the UK’s competitiveness could be compromised by further green taxes.
Roy Maugham, Tax Partner at UHY Hacker Young said: “Many businesses fear that they will be forced to bear the brunt of tackling climate change through increased taxation and yet more red tape that will place too onerous a burden on them to remain competitive with the US, China and India.
“To get UK businesses on-side the government will need to show more success in tackling climate change through global initiatives.”
Maugham added that the government must to be proactive in its response to the business community’s feelings of distrust surrounding the efforts to tackle climate change.
It would appear many remain unaware of certain tax breaks, such as 100% tax relief in the first year of investing in some environmentally friendly equipment and relief for investing in company cars with low emissions. Half of respondents would like to receive rewards for investing in green technologies. They believe this should come in the form of extra tax breaks for companies.
© Crimson Business Ltd. 2007
