Carbon Tax a Possibility

November 18, 2008 New Zealand Taxation  No comments

The new National government has made indications that they might be willing to support a new carbon tax scheme.

Speaking at a Federated Farmers conference on the 18th of November, John key admitted that his National Party would be willing to consider a carbon tax in place of t Emissions Trading Scheme ( ETS). While he did not openly support the idea of a carbon tax, John key said that a committee would be set up to evaluate the benefits and drawbacks of the Emissions trading Scheme, carbon tax or a possible hybrid of the two.

No more details of a new carbon tax were given and none are expected until the review process begins. Similar no pre-standing views on the ETS were disclosed, nor an outline of a possible hybrid of the two. But it was conceded that the carbon tax can be more predictable than the ETS and in many cases significantly easier to use. John Key mentioned to press after the Federated Farmers conference that the carbon tax could be used as an interim measure before a revised ETS was implemented.

Federated Farmers spokesmen did not make any immediate comment on John Key’s thoughts. Green party leader Jeanette Fitzsimons supported the idea, but also commented on the fact that the National Party had strongly opposed the carbon tax while it was a Green part or Labour Party initiative.