Carbon tax causing a stir in Australian politics
The Australian government recently enacted a carbon tax, joining other countries with similar initiatives that are aimed to reduce the greenhouse gas emissions coming from businesses and organizations. The country’s carbon tax has been a subject of controversy for several years, causing division in the political world as well as the private sector. The tax went into effect this week, creating a great deal of tension in the country’s political structure. Despite the controversy associated with the carbon tax, however, it is likely to be in place for years to come.
Emissions subjected to taxation in an attempt to reduce impact on environment
Taxing carbon dioxide emissions is becoming a more popular concept as countries continue to look for ways to reduce their impact on the global environment. By instituting a carbon tax, governments are able to impose limits on the amount of CO2 emission businesses and organizations are able to produce before being faced with steep fines. Emissions are still taxed at a reasonable rate as long as emitters keep their CO2 production beneath a certain threshold.
Carbon tax aims to keep emissions low
Australia’s carbon tax will have emitters paying approximately $23 per ton of CO2 produced between July 2012 and June 2013. This tax will rise to $25 per ton for the 2014-2015 period. During the initial phase of the carbon tax, international carbon credits will not be recognized or allowed to be traded or imported. Trading of these credits will begin in 2015. Australia’s Department of the Treasury notes that the carbon tax is expected to cut the country’s CO2 emissions by 159 million tons by 2020. The Treasury also suggests that the carbon tax will have a beneficial impact on the economy as it will provide some companies with compensation for their lowered CO2 production.
Policy expected to have economic impact
Though the carbon tax is expected to bring several benefits to the country, it is still an issue steeped in controversy. Supporters of the initiative claim that the carbon tax is needed to help boost the country’s economy. Its opponents, however, claim that it will weaken the country’s economy by creating an unattractive environment for businesses.
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