There are many different means of taxes. So wondering How to calculate business tax? Here we are offering you all the information.
The choice of means depends on the nature of the environmental problem. If as a means of control using the tax, ensures that harmful consumption is reduced where the cost of reduction is the lowest. This means that emissions the social costs of reduction are lower than, for example in a situation where emissions are regulated by a quantitative limit that requires everyone reduce harmful consumption by the same amount. In addition, environmental taxes which can be used, for example, for other welfare losses.
Emissions trading works in much the same way as an environmental tax does if emissions permit to be auctioned. The main difference between emissions trading and environmental taxation is that the emissions trading scheme limits the total amount of emissions and allows the cost of pollution is determined by the market. In the case of a tax, consumers and businesses, but the reduction in emissions depends on how strongly consumers and businesses react to price increases oral. For environmental taxation, reliable information is needed on how large for example, the environmental damage caused by increased particulate matter or CO2 emissions are.
In many cases, this research data is annoyingly scarce. However, it is important strive to ensure that the tax is targeted correctly. If the tax is not allocated correctly, environmental benefits are not achieved, but the tax causes welfare losses at the same time in the same way as all other taxes. In practice, environmentally harmful consumption is regulated by excise duties.
If excise duty is intended to control consumer behavior, it is important seek to locate the external impact to be addressed firstand then the effect is priced consistently. Sums-The main purpose of excise duties has been to collect tax revenue to the state. If this is a priority, it would make more sense to strive for coherence instead of various exceptions. Unless there is a special reason to control household behavior, it is not justified to tax, for example, a home electronics and diesel in a different way.
Health taxes patronize?
In addition to excise duties related to environmental damage, many countries have health taxes, so-called sin taxes. These include tobacco, alcohol and taxes on unhealthy, usually sugary, salty or fatty foods. Tar-Attempts have been made to simplify the following difference veysveron and environmental tax: the purpose of the tax is to protect innocent bystanders from the actions of others; and health taxes try to protect people from themselves.
Such a demarcation However, there is problems if the disadvantages experienced by bystanders, such as tobacco and alcohol are widely understood as a social disruption and an economic cost nuking.In some cases, health taxes can be specifically justified by externalities combating. Excessive alcohol consumption can cause these a lot.