A new momentum towards green tax reforms

A fiscal crisis in the EC is lending a new impetus to calls for a shift in the burden of taxation from income to resources. EC Finance Ministers have been presented with a European Commission report spelling out why traditional sources of tax revenue are being eroded, and proposing environmental taxes as one source of new revenue. Heads of state gave political support to the idea at the Florence summit in June. Business supporters and opponents of a greening of the tax system are emerging in the new climate. But the EC Treaty requirement for unanimous voting on tax issues remains a stumbling block.

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