TAX--the highlights !


Scrap Council Tax-- 

Green Party policy is to get rid of Council Tax because it is inequitable. To introduce a fairer tax the Green Party proposes a Land Value Tax. This would have the effect of making sure that land was used, as it would tax second homes, unused land, etc.

Scrap VAT-

VAT is a big money raiser and it is indiscriminate in how it is used. Green proposals are to introduce taxes which relate to the environment, so-called eco-taxes. These would penalise trading which harmed the environment or which refused to utilise recyclables, such as in packaging etc. Money raised could then be put into renewable energy research and nationwide programs.


Natural Resource Tax--

Tax will be applied at the forest, quarry, mine or port of entry with a Natural Resources Department advising the Treasury on the levels at which it should be set.

Resource Taxes will be levied at a zero or reduced rate on recycled materials and at a zero rate on re-used products. The effect of Resource Taxation will be to encourage not only sustainable production but also waste reduction, recycling and avoidance through re-use and repair.

The Resource Tax will apply to fossil fuels too.  These will become more expensive, reflecting more their real cost to the environment, hence making  renewables increasingly attractive.

The Tax itself will be invested in renewables. In addition, fuel standing charges would be abolished so that fuel cost will more directly reflect the cost to the environment.


Climate Change Levy (CCL) -

The present Climate Change Levy poses a 15% tax on industrial energy use.  But the CCL is too complex and it allows improvements to be lost by extra emissions from economic growth. The Green Party would tighten this up.

Citizen's Income and Income Tax

The Citizen's Income will be the right of every citizen of the country.
It  will replace the role of benefits.

Income Tax will be levied on all income above the Citizen's Income. Tax rates will be banded and will increase progressively so that those on higher incomes are paying higher marginal rates of tax. Personal tax-free allowances will end, superceded by the Citizen's Income.


Redistribution of wealth and resources

The implications of climate change and the end of oil are massive. A redistribution of wealth and resources between districts and regions with differing tax bases may be necessary. The mechanisms to achieve this will be agreed by local governments themselves through a democratic and evolving process, after wide-ranging consultation and based on objective criteria including factors such as net migration, poverty and social deprivation, industrial base, natural resources, and environmental damage.

Abolish National Insurance

National Insurance is a form of income tax in disguise. It only applies to "earnings" (ie, wages and self-employment income), so it means that ("unearned") investment income is currently taxed at a lower rate than "earned" income.

Under Green taxation, National Insurance will be merged into general Income Tax. The distinction between "earned" and "unearned" income will no longer be used to determine different methods of taxation.