Artax | Registered Tax Consultant

Green Taxes

The world is incruisingly heating up in the last decades. Greenhouse gas emissions envelop the earth and trap the sun’s heat causes global warming and climate change.  Waste management is related  to health  issues, climate change, poverty, food and resource security, sustainable production and consumption. At the same time, United Nations Environment Program 2021 release that, Indonesian households produce 77 kg of food waste every capita every year. Food waste contributes to greenhouse gas emissions. Waste that is not managed properly will produce excess methane and CO2.

 As we know, Taxes have regulatory function which is used by the  government to achieve country goals. The Harmonization of Tax Regulations, start July 1, 2022 the government officially imposes a Carbon Tax that have a negative impact on environment. Not only that, in the Regional Taxes, waste or cleaning services are one of the retributions by regional government as an instrument for handling waste problems in Indonesia.

Like England, 81% people want to buy eco friendly products. Even in Aussie, 75% consumer want to pay more just for eco friendly products. In United States, sollar cell users will be fully amortized for increase deductible expense. Non-CFC AC consumer are given a 10% discount from ac price. Environment mitigation influenced consumption production patterns and lifestyle. Taxes can be used as a tool to regulate public consumption. Green tax revenue can government use to funding protected forest rehabilitation and conservation.  So then, we will have a healthy environment.

Credits: Salsabila Silsilia, Agent of Artax