Get to know what carbon tax is? Why should Thai businesses prepare to deal with this?

13/06/2024

In an era where the problem of climate change is becoming more serious. Affecting the entire world system Humans therefore must seriously find a way to solve this problem. One of the important tools that many countries around the world are interested in is “Carbon tax” This article will explain what a carbon tax is.

What is carbon tax?

Carbon tax or carbon tax is a tax that the government collects from entrepreneurs and organizations that emit greenhouse gases in amounts above a certain threshold, such as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and other gases. Fluorinate (F-Gases), etc., that arise from the production process of products and services. as well as various activities In business operations such as producing electricity Wastewater treatment Using fuel for transportation Products resulting from cutting wood Including operating machinery in industrial plants, etc.

What is the purpose of the carbon tax?

1. Reduce the amount of greenhouse gas emissions

By increasing the cost of goods and services that cause greenhouse gas emissions.
Encourage producers and consumers to use products and services that have low carbon pollution.
Affecting production and consumption behavior

2. Generate income to support environmental policies

Governments can use carbon tax revenue to invest in projects such as renewable energy. green technology reforestation
Energy conservation
Research and development on climate change
Helping those affected by climate change

Types of carbon taxes

Direct carbon tax: Collect taxes from the amount of greenhouse gas emissions that are directly generated from the production of goods. This usually has a higher tax rate, such as the production of electricity from fossils, the combustion of machinery in factories, the incineration of garbage and wastewater treatment, the combustion of various vehicles, the production of cement and various chemicals, etc.
Indirect carbon tax: Collect taxes from goods or services related to greenhouse gas emissions, such as excise taxes on oil, cooking gas, coal, vehicles, etc.

Examples of countries that use a carbon tax

There are currently more than 30 countries using carbon taxes around the world. Most of them are countries in Europe such as

Finland It was the first country to enact a carbon tax in 1990, starting gradually from a tax base as low as $75 per tonne of CO2 before gradually increasing. Gradually increase the tax rate. Finland currently collects an average carbon tax of $83.74 per ton of CO2.
Netherlands Started in 1990, collecting environmental taxes from all types of fossil fuels, bringing tax revenue back to the economy through tax reductions and a fund to stabilize fuel prices.
Denmark Effective in 1991, fossil fuels will be subject to an energy tax. and a carbon tax with a ratio of 31 euros per carbon dioxide equivalent (tCo2eq) and in 2008 the government received over 905 million US dollars in tax revenue.
Sweden Effective in 1991, in some fields of production there is an exemption to pay only 50% of the normal tax rate. and some industrial sectors that use high energy, starting at a rate of 250 SKR/tonC02, increasing gradually.
United Kingdom Effective in 2001, tax revenues generated will be recirculated back into the economy, for example to fund health insurance. Support the development of renewable energy and energy conservation. without adding additional revenue to the state
Brigis Colonia, Canada Effective in 2008, the carbon tax will cover almost all fossil fuel types and in 2008-2009 could collect approximately US$292 million. Revenue returns to the people through tax cuts.
India Begun in 2011 to collect coal taxes both domestically and imported. The collected revenue goes to the National Clean Energy Fund. To support research and development of renewable energy technology.
Austria Effective in 2012, the rate is 23 Austrian dollars/ton of carbon. More than 50 percent of the income from tax collection goes to providing relief to low- and middle-income households.

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