Tax measures which have an environmental impact act alongside government’s wider environmental objectives. As these objectives have become more ambitious, the role of the tax system may become more important. HM Treasury’s 2020-21 review into funding the transition to a net zero greenhouse gas economy explicitly plans to “consider the full range of government levers, including tax” when considering where costs will fall.
This study considers the range of current environmental tax measures and examines whether HM Revenue & Customs and HM Treasury are using their resources effectively in managing environmental tax measures. We will consider how tax measures are administered and managed to deliver environmental objectives, and how their impact is assessed and evaluated.