The Association of Chartered Certified AccountantsDecember 2018 About ACCAACCA (the Association of Chartered Certified Accountants)is the global body for professional accountants, offeringbusiness-relevant, first-choice qualifications to people ofapplication, ability and ambition around the world who seeka rewarding career in accountancy, finance and management.ACCA supports its 208,000 members and 503,000 students in 179countries, helping them to develop successful careers in accounting andbusiness, with the skills required by employers. ACCA works through anetwork of 104 offices and centres and more than 7,300 ApprovedEmployers worldwide, who provide high standards of employee learningand development. Through its public interest remit, ACCA promotesappropriate regulation of accounting and conducts relevant research toensure accountancy continues to grow in reputation and influence.ACCA is currently introducing major innovations to its flagship qualificationto ensure its members and future members continue to be the most valued,up to date and sought-after accountancy professionals globally.Founded in 1904, ACCA has consistently held unique core values:opportunity, diversity, innovation, integrity and accountability.More information is here: accaglobal Tax as a force for good Rebalancing our taxsystems to support a globaleconomy fit for the future About this discussion paper This discussion paper explores how shifting tax burden fromlabour to natural resource use, pollution and consumptioncould help meet the goals of the Paris Climate Agreement,the UN Sustainable Development Goals (SDGs) and aninclusive, circular economy. ABOUT THE AUTHOR Femke Groothuis is co-founder and president of The Ex’tax Project(ex-tax), a think tank focused on fiscal innovations toboost the SDGs and the circular economy. The foundation workswith experts and business leaders to enhance understanding of thedynamics of a tax shift from labour to natural resource use andpollution. Groothuis is an analyst, adviser, publicist and publicspeaker. Between 1999 and 2009, she was Investment Manager atEx’tent Green Venture Capital, a Dutch impact investment fund. 4Foreword The art of tax policy is to strike a balance between securing therevenues needed by governments to finance their social andeconomic programmes and maximising the contribution of thetax system to a thriving, efficient and inclusive economy. Achieving these multiple objectives isalways difficult but particularly so in timeswhen societies are going throughprofound change in terms of howeconomies function and where benefitsfrom economic activity end up. How tomake sure that the rules of internationaltaxation avoid double taxation but alsodouble non-taxation How to ensure alevel playing field between businessesthat rely strongly on digital platforms andthose that do not How can labour taxesadapt to the gig economy What role fortaxes in mitigating rising inequality ofincome and of opportunity These arejust some of the questions that tax policymakers grapple with. In addition to all this, the OECD has longargued that taxes have major potential aspolicy instruments to help curbgreenhouse gas emissions, environmentalpollution and biodiversity loss. Well- designed environmental taxes providehouseholds and businesses with financialincentives to reduce pollution in ways thatsuit them best, and this reduces pollutionat lower cost than less flexible forms ofgovernment regulation are able todeliver. This is a matter of cost-effectiveenvironment policy. Environmental taxesalso raise revenue, and in this sense are amatter of tax policy. How to deploy therevenues Answers to this question havea major impact on the economic case forenvironmental taxes – revenues shouldnot be squandered – and on the socialacceptance of environmental taxes. The discussion in the paper directlyspeaks to the interaction between taxpolicy and environment policy aspects ofenvironmental taxation. It argues thatshifting the tax burden from work toenvironmentally harmful activities is bothgood for the environment andstrengthens the inclusive growth potentialof our economies. OECD work hassimilarly identified labour tax cuts as onepromising option for using environmentaltax revenues. Depending on countries’specific contexts, other good options caninclude business tax cuts, domesticresource mobilisation, etc. The point isthat decisions on revenue use can makeor break the case for environmental taxes.Discussions and decisions onenvironmental taxes therefore best takeplace in dialogue between environmentand tax policy makers. Tax reform can improve environmentalperformance while contributing toinclusive growth. As is shown in the paper,however, tax policy is not living up to itspotential and signs of change are notparticularly strong. Policy-makers shouldnot be asleep at the wheel, but insteadtake on the difficult task of turning thepotential of environmental tax reform intoa politically workable proposition. Theanalysis below provides evidence andarguments to that end, for both the taxand environment policy communities. Pascal Saint-Amans Director of the Centre for Tax Policy and Administration, OECD 。。。。。。