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Carbon tax on vehicle fuels

Here is a long overdue idea:

'Brussels is considering a Europe-wide carbon tax on road fuel as the European Commission seeks to bring more carbon emitters into line with the European Union’s climate change policy.

The proposed tax on petrol, natural gas and diesel would hit consumers directly and is supported by the Nordic countries and by France, which has introduced a carbon tax on domestic fuel. Britain is opposed to the tax, but the proposal is gaining support among other European countries. The proposal, from Laszlo Kovacs, the European Taxation Commissioner, gained Belgium’s backing as a means of shifting revenue collection from unpopular payroll taxes to consumption taxes on carbon.

A Treasury spokesman said that Britain had no plans to introduce a carbon tax. The Government is almost certain to oppose it in Brussels, arguing that the Commission has no mandate to legislate on matters of national taxation. However, the Government's main political concern is likely to be opposition from the haulage industry and from motorists.'

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