Swedes put forward HFC tax proposals
Tax at 21 per cent of the level that exists in the EU; companies paid a premium for handing in HFCs for destruction
The Swedish Ministry of Finance has put forward its proposals to reduce carbon emissions via a tax on HFCs.
The proposals suggest setting a tax rate of 21 per cent of current levels, and paying premiums to companies who volunteer gases for destruction.
The Swedes argue that it should be the polluter that pays and so the tax is issued without exemptions and should be placed on HFCs that are taken into Sweden, or alternatively HFCs that are produced in Sweden.
The report estimates that emissions in Sweden will fall by 0.5 million tonnes (as carbon dioxide equivalent) in 2020 with the aid of the tax on HFCs, as opposed to by 0.4 million tonnes without the tax.
The Ministry is looking at 1 July 2010 start date.
The tax proposals
As a starting point it has been proposed that the tax should stand at 21% of the general level that exits in the EU.This is in addition to the sales price.
The proposal also suggests the introduction of a premium that is paid out by the Swedish Environmental Protection Agency to companies that hand in HFCs for destruction. The ‘premium’ will be as big as the actual tax and paid out in full and disregard whether the HFCs were previously taxed or not.
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