Paper industry says climate levy is `rip-off government'
15 Jan 2000
The Paper Federation of Great Britain has demanded a total exemption from the proposed climate change levy in return for a 40 per cent reduction in the industry's specific energy consumption over the next decade. If the government refuses, says the Federation, the levy is an example of `rip-off' government - more concerned with taxing industry than protecting the environment.
`Our targets are challenging, and will be costly, but our problem is that an unrebated levy would simply take away our ability to invest in the improvements required to meet the government's targets,' says Paper Federation president James Daglish.
The climate change levy is set to be introduced in 2001. The government has conceded that industry sectors which make voluntary commitments to reduce energy usage will receive significant discounts on the tax, but has not yet finalised the size of these discounts. It has indicated that it will not give 100 per cent discounts, however, which has triggered Daglish's offer. `Anything less than 100 per cent exemption will display an intention by government to further tax industry rather than address the environmental imperatives.'
