Environmental tax measures
Executive summary
- AAT supports the introduction of a single threshold to assess plastic packaging tax liability but does not believe its application to plastic packaging with less than 30% recycled content is sufficiently ambitious and cannot be considered “world leading” as the government suggests. Instead AAT suggests that a threshold of 40% be used, with a further increase to 50% in 2030 to ensure momentum is not lost.
- AAT believes that Vehicle Excise Duty, VAT on fuel and fuel duty could all be scrapped in favour of pay as you drive technology which would protect revenue and have various positive environmental benefits.
- The Deposit Return Scheme due to be introduced in 2024 must be set at a reasonable level of at least 20p and exemptions for some of the very smallest businesses, in limited circumstances, should be considered.
- Tax policy in the UK must support environmental objectives such as reaching net zero rather than hinder them as is currently the case.
- Greater enforcement to close environmental tax gaps is essential both to protect revenue and limit environmental damage.
Related consultation responses
Enhancing climate-related disclosures by asset managers, life insurers and pension providers
We support efforts to increase the visibility of climate related risks in financial markets, and the use of TCFD recommendations as a basis of reporting.
Plastic waste
AAT strongly supports efforts to reduce single use by encouraging alternatives, penalising through taxation, charges or both and incentivising behaviour change.
Aviation tax reform
We don't agree with proposals to reduce Air Passenger Duty on UK domestic flights because it contradicts and weakens policy on reaching net zero by 2050.
Raising Standards in the Tax Advice Market: AAT's submission to HMRC
AAT argues for mandatory membership of professional bodies for all paid-for tax advisers to address the high levels of poor-quality tax advice in the UK.
