Tuesday, December 29, 2009

Echoes of the constitutional rejection of the French carbon tax

The French Constitutional Council's decision regarding the French carbon tax that was going to enter into force Jan 1 now forces the French government to introduce new carbon tax bill on Jan 20.

The decision is not against a carbon tax. It points out the inconsistencies and selective targeting and rejects the rationale for most exemptions to the tax. Also argued that inequalities re the tax existed in the law. It particularly pointed out, inter alia, that the emissions of 1018 most polluting sites were exempt from the tax (refineries, cement companies, etc), the emissions of air transportation plus those of public passenger transportation.

IMO, the French Constitutional Council's carbon tax decision serve as a reminder to policy - law makers everywhere that policies (no matter what policy area), laws and taxes have to have consistency and "regulatory quality".

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