Taxes unchanged at 3% of GDP in 2004
Government receipts from environmental taxes
Total revenue received by the government in 2004 from environmental taxation was £35.0 billion. Environmental taxes, as a percentage of GDP, followed a trend of small increases between 1993 and 1999. Since 1999, however, this trend has reversed. In 2004, the proportion was 3.0 per cent of GDP, the same as in 2003. This compares with 3.6 per cent in 1999. Similarly, environmental taxes as a percentage of total taxes and social contributions increased to a maximum of 9.8 per cent in 1999, but in recent years have fallen to 8.3 per cent in 2004. This is down from 8.6 per cent in 2003.
Duty on hydrocarbon oils such as petrol and diesel accounted for 66.9 per cent of total environmental taxation in 2004, a share that has remained broadly unchanged since 2000.
Revenue from the Landfill Tax rose by 11.0 per cent between 2003 and 2004 as a result of the policy to increase the tax rate by £1.00 per tonne each year. Revenue from Vehicle Excise Duty has increased by 4.5 per cent from £4.6 billion in 2003 to £4.8 billion in 2004.
Revenues from the Aggregates Levy were similar to those in 2003, amounting to just over £0.3 billion in 2004. Revenues from Air Passenger Duty rose 9.6 per cent compared with a year earlier to £0.9 billion, but remain lower than their 2000 peak.
Source: Office for National Statistics
Notes: The interpretation and use of measures of environmental taxes need care. In particular, the levels of revenues from environmental taxes do not necessarily indicate the relative importance or the success of environmental policy. High environmental tax revenues can result either from high rates of taxes or from high levels of environmental problems (e.g. pollution) leading to a large tax base. The broad measure of revenues can also fail to capture the effect of the differential rates that encourage a shift away from higher impact behaviour such as the use of leaded petrol.
Environmental accounts provides data on the environmental impact of UK economic activity and the use of the environment by the economy.
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