The proposed ‘additional greening’ package comprises:
With the ambitious package of environmental taxes outlined, a 20% share of green tax revenue is feasible in the Netherlands, equivalent to 5% of the country’s Gross Domestic Product. This figure of 5% is in line with what international studies anticipate as being the fiscal limits of a green tax system. For this level of greening, Euro-pean coordination is not essential. In calculating the figure of 20% green tax revenue, due allowance has been made for the fact that reduced pollution will lead to declining tax revenues. Expectations are that this package will make a major contribution to achieving the government’s environmental and climate targets, particularly the latter. With this package, an additional greening of around € 8 billion can be achieved over and above existing green revenues of some € 19 billion. The share of green taxes would then rise from 14% today to around 20%. These revenues can be recycled in the form of lower taxes on corporate profits or labour, with the additional option of using some fraction to incentivise further energy-saving by selected target groups.
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