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Publication

Greening of taxation

Book - Report

Reducing the tax burden on labour and directing consumption and production towards more environmentally friendly alternatives can provide environmental benefits and a new growth potential for the Flemish economy. The internalisation of environmental costs in the price of products and services stimulates consumers and producers to choose more environmentally friendly alternatives.

This study examines the effect of the introduction of various environmental taxes and the use of these revenues to reduce labour costs (social security reduction) or to increase net wages (personal income tax reduction). The modelled scenarios are always budget neutral. For example, a number of environmental taxes have been fully compensated by a reduction in the personal income tax or in the employer's contributions.
Number of pages: 118
Publication year:2014
Accessibility:Open