Carbon tax is a tax that is paid by businesses and companies that release high levels of gas into the atmosphere. Companies and businesses will be required to pay the carbon tax in accordance to how much their activities leave footprints in the environment. The carbon tax was introduced to try and reduce the emission of carbons in the atmosphere and force companies and business to find cleaner options of production. It is a way of encouraging businesses and individuals to find ways of maintaining a cleaner environment that is safe for all to live. The amount to be paid on the carbon tax is equivalent to the activity that your business is involved in. the more the emission by a company the more they will pay in carbon tax. Some of the emission that will be taxed will include, Fossil fuel combustion Emissions from industrial process and product use and fugitive emissions, Carbon dioxide, Methane, Nitrous oxide, Perfluorocarbons, Hydrofluorocarbons, Sulphur hexafluoride
Who does it apply to?
The carbon tax aims companies and businesses that are involved in activities that emit carbon dioxide into the atmosphere. It’s also aimed at individuals who do not find cleaner ways of production. However even though the tax is aimed at businesses it will have adverse effects on individuals. Fuel prices will go up because fuel production companies will be trying to make up for the money they are paying in taxes.
