The Chartered Institute of Taxation (CIOT) has urged the government to report on the environmental impact of each of its tax measures from now on as part of the effort needed to ensure the UK meets its net zero 2050 target.
The CIOT is calling for the inclusion of environmental impacts as a compulsory standalone category for Tax Information and Impact Notes (TIINs) on all tax policy proposals.
The institute made the call for compulsory environmental impacts on TIINs in its submission to the Treasury Committee Inquiry into the Autumn Budget and Spending Review 2021.
Jason Collins, chair of the climate change working group, CIOT, said: “COP26 showed the urgent and huge breadth of work needed by governments to tackle climate change. The Treasury must harness the power of these tax impact assessments to help the Government develop tax policies that support the achievement of ‘net zero’.
“We are concerned that environmental and climate change risks are treated as an ‘after-thought’ when assessing the impact of a tax policy, and that environmental impacts of taxes are more diverse than those immediately apparent to policymakers.”
He added: “It is time for climate and environmental impacts to have their own section in tax information and impact notes. This will ensure that policymakers properly consider such factors in all their decisions.”