Energy Secretary Chris Huhne has backed plans to increase environmental taxes by £15bn per annum, taking the proportion of government revenue raised through ‘green taxes’ to around 10 per cent. The theory is that this will make it possible to raise the income tax threshold and free many people from paying income tax.
Mr Huhne says that he has not determined where these taxes will fall but the likely contenders are extra duty on fuel and more taxes on air travel. New ways of charging electricity users are also thought to be on the agenda.
Source: The Telegraph