POLICY TOOLS
Project: Taxation Incidence and Relations of Ecological Tax Reform
State: Finished
Submitter: Ministry of Environment of the Czech Republic
Time of Relevance: 2003–2004
Project Objective:
An analysis of taxation usage in environmental protection in connection with environmental protection policy, the public finance system and labour market. Evaluating, selecting and proposing the tax base (fee base), which would be the subject of a rate increase. An evaluation of yield neutrality and the impacts of the proposed and discussed concept of ecological tax reform. A simulation of tax yields and impacts on macroeconomic factors, selected sectors, and the social and household taxation incidence of the proposed ecological tax reform.
An analysis of taxation usage in environmental protection in connection with environmental protection policy, the public finance system and labour market. Evaluating, selecting and proposing the tax base (fee base), which would be the subject of a rate increase. An evaluation of yield neutrality and the impacts of the proposed and discussed concept of ecological tax reform. A simulation of tax yields and impacts on macroeconomic factors, selected sectors, and the social and household taxation incidence of the proposed ecological tax reform.
Brief Summary:
- An analysis of the taxes related to environmental protection including strategic and analytic documents of the EU. A discussion on the tax base, the mode of recycling tax yields, compensation that would lighten the social impact, the impact on competitiveness of Member States in particular, an exploration of the model method used for simulating the impacts of EDR, an analysis of IEA/OECD tax statistics and trends in the context of the public finance system.
- A discussion of theoretic issues: taxes, fees, covers, identification of priorities in protecting the environment, an analysis of the present system of taxation, an analysis of economic instruments’ effect on environmental protection, an analysis of the legal environment for enlarging the present taxes and introducing new ones, an analysis of public finances for the year 2003 including the approval of a new excise duty act, the proposal of an amendment to the value added tax law and the possible taxation from an electric energy law, an analysis of the concepton of the monetary fund tax policy (including transforming some local fees), the minimum obligatory rate of excise energy tax, an analysis of the correction of transport costs.
- Choice of taxation, tax base, rate and specific tendency of relevant taxes, presumption of overall and additional yields from increased taxation, at otherwise equal conditions and variably according to the relevant elasticities in Europe and our own assessment. A specific proposal of increased taxation for environmental protection, recycled yields and a specific proposal of the policy.
- Collecting relevant data for economic impacts simulation. Evaluating the results of data analysis, improving both models used, simulating tax yields, an analysis of possible additional tax yields from the increased tax rate. An estimation of price elasticity in demand for energy (electric energy and motor fuels), analysis of the labour market, an analysis of the taxation incidence for a price increase in relevant commodities from selected sectors (energy and transportation in particular). An analysis of the impact of environmental policy reform on competitiveness and the taxation incidence on households from price increases in relevant commodities.
Outputs:
Proposal for improving ecological tax reform in the Czech Republic based on expert knowledge and theory.
Proposal for improving ecological tax reform in the Czech Republic based on expert knowledge and theory.
