The Truth Behind Carbon Tax

It’s likely when you hear the word tax that what pops in your mind is that it’s another going to be another financial burden for you to carry! However the carbon tax is different to general government money grabbing and it applies to the commercial industry only, though all consumers will ultimately have to carry its cost.

If you are a business owner in any industry with high power consumption then you are probably quite concerned about what increased expenditure you are likely to have; final figures are still be set but around $26 / Tonne of emissions produced seems likely.

While normal government taxes are based on your income, the carbon tax on the other hand is based on the 

carbon dioxide and greenhouse gases that you emit in the environment.

Does this mean you cannot emit carbon? Well no; ultimately zero carbon emissions would be the goal, but right now it isn't feasible and we don't have a concrete alternative for fossil fuel combustion, though solar energy is looking the most promising. What the carbon tax implies is that the user must pay a certain amount set by the government for any carbon production in excess of their caps.

What good would it bring?

Well, first of all it will bring a drastic reduction in carbon emissions; obviously if you are a company or a factory owner you will be very motivated to reduce these ongoing costs as much as possible. So this scheme is designed to force corporations and factory owners to find more energy efficient ways to process their 

products and reduce carbon emissions.

Another benefit is that the funds collected will be solely used for the development of clean energy sources which should compensate for carbon emissions in time.

What effects would it have for the commercial sector?

Finding ingenious ways of processing products not only will reduce greenhouse gases but it will also assist you in finding cheaper and cost effective ways to manufacture. Ultimately all of us would benefit from some form of Carbon Taxes, even though there will be some short term expense, if it aids the introduction of a sustainable energy source that provides cleaner and cheaper energy long term.