Reforming the Tax System to Promote Environmental Objectives: An Application to Mauritius
June 1, 2011
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Summary
Fiscal instruments are potentially among the most effective, and cost-effective, options for addressing externalities related to poor air quality, urban road congestion, and greenhouse gases. This paper takes a case study, focused on Mauritius (a pioneer in the use of green taxes) to illustrate how existing taxes, especially on fuels and vehicles, could be reformed to better address these externalities. We discuss, in particular, an explicit carbon tax; a variety of options for reforming vehicle taxes to meet environmental, equity, and revenue objectives; and a progressive transition to usage-based vehicle taxes to address congestion
Subject: Environment, Excises, Expenditure, Fuel tax, Greenhouse gas emissions, Public expenditure review, Taxes, Vehicle taxes
Keywords: congestion, E. vehicle ownership tax, Excises, Fuel tax, Global, global warming, green tax, green taxes, Greenhouse gas emissions, ownership tax, percentage tax, price rise, proportional tax, Public expenditure review, reform option, tax design, tax rate, tax saving, tax system, vehicle exemption, vehicle price rise, vehicle tax, vehicle taxes, vehicle use, WP
Pages:
39
Volume:
2011
DOI:
Issue:
124
Series:
Working Paper No. 2011/124
Stock No:
WPIEA2011124
ISBN:
9781455263417
ISSN:
1018-5941
