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NAO report on management of tax measures and environmental objectives

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The National Audit Office (NAO) has published a report examining how HMRC and HM Treasury manage tax measures with environmental objectives. The report also covers how the resources of the exchequer departments are used to manage the relationship between the wider tax system and the government’s environmental goals. The report highlights evidence of the positive impact taxes can have on the environment, however, it shows that exchequer departments focus more on the revenue raised from environmental taxes as opposed to their environmental impact.

The report also explains alternative measures which impact the government’s environmental objectives, yet are not recognised as environmental in nature. The NAO states that exchequer departments do little to identify such measures or assess their connection to the government’s environmental goals. In order to achieve such goals, especially on net zero, the report emphasises that the government must consider every option available. The relationship between existing taxes and environmental ambitions must be understood to ensure the taxes contribute as intended and to learn lessons for future taxes.

Issue: 1520
Categories: News