PwC Partners Claim Changes to Environmental Legislation May Create Green Tax
PricewaterhouseCoopers’ partners have claimed that the changes that have been recently made to environmental legislation may create a green tax by the government.
PricewaterhouseCoopers is one of the Big 4 firms of UK, which are currently dominating its large audit market. The firm thinks that the recent environmental legislations may result in an adverse effect on the revenue it earns from auditing, the foremost service it offers to its clients.
George Osborne’s spending review has revealed that the revenue that the government will be earning from the green legislation will go into the public purse and not be recycled back into the scheme, as was thought of previously.
The climate change partners of PricewaterhouseCoopers are of the opinion that the changes in green legislation will lead to an increase in the compliance cost for businesses as well as create a new green tax.
Henry Le Fleming, who is the Carbon Policy Specialist at Pricewaterhouse Coopers, said in an interview that “revenue neutral” was the original design of the scheme where all the money generated by it would ultimately go back into it. He also said that he believes that this could “substantially increase compliance costs” for businesses in the profession.
Harry Manisty, who is Environmental Tax Specialist at PricewaterhouseCoopers, said that the hope of the UK government was such that changes to existing environmental scheme would result in changes in the carbon content on fuels.
Manistry also said that the government may now abandon these plans in order to avoid double taxation of carbon for CRC participants, to withhold the pressure.
The scheme is expected to generate £3.46bn, according to spending review documents. This will happen over the next 4 fiscal years.