Local Government Rates in New South Wales, Australia: An Environmental Tax

Publisher:
Richmond Law & Tax Ltd.
Publication Type:
Chapter
Citation:
Critical Issues in Environmental Taxation. International and Comparative Perspectives: Volume III, 2006, 1, pp. 537 - 556
Issue Date:
2006-01
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It is well recognised that environmentally related taxes play a crucial role in the mix of economic instruments used to enhance environmental policies in OECD countries." In general terms, economic instruments "provide an incentive to polluters to modify their production or consumption behaviour via price signals"," This affords ,1 significant difference from traditional and familiar 'command and control' environmental regulation. The use of environmentally related taxes is also in line with 'he 1972 OEeD concept of the Polluter Pays Principle (PPP), defined by the OEeD as a non-subsidisatlon prmciple.' It concerns who should pay for environmental protection by ensuring that the cost of pollution measures is reflected in the price of goods and services that cause the pollution.'! There is nothing like this mechanism at the local government level in New South Wales, the most populated state of Australia.
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