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Nov 22, 2021

is it the environment or not?

Climate change, global warning, plastics in the oceans, etc - the environment is an important issue and we really do need to do better to safeguard our world.

I have no problem with the government using the tool of taxes to try to direct our society to stopping some behaviors (such as taxes on cigarettes) and to promote other behaviors. All governments do it, some more some less, some on behaviors more in the consensus and some less - anyone complaining just doesnt like the affecting of the specific behavior, in whatever direction it is being affected.

Many do not like, for example, the recent increase in taxes on plastic disposable dishes and the like. Fair enough. I don't like it either. Nobody wants to pay more. But we are told that the purpose of the tax is to get people to use less plastic disposables, for the benefit of the environment. Fair enough.

According to Calcalist, with the expansion of electric cars into the market the government realizes that it is going to be losing a lot of revenue from the taxes on gasoline.  62% of the price we pay to fill up ours cars with gas goes to taxes. 

If the government were worried truly about the environment and encouraging behaviors and spending that is good for the environment and to discourage behaviors and spending that are harmful, the government would continue to tax gasoline (though they really should not have been taxing it at such a high rate all along) and would give tax benefits to people buying more environmentally friendly automobiles such as hybrids and electric vehicles. 

According to Calcalist the government is considering levying a tax on the driving of electric cars. They can't really tax the electricity, the fuel, of the car, as how would that be differentiated form the electricity used in general by car owners or by anyone in Israel. So what they are considering doing is taxing the driving of electric vehicles. It is unknown how such a tax would work at this point but it could be a  fee per kilometer, charged at the end of the year 

So to effect good behavior in favor of the environment they have raised taxes on plastic disposables, and they will possibly also tax electric vehicles as well even though that is good behavior for the environment. Is it the environment or the government coffers that really determine what should be taxed? Do the coming taxes on electric vehicles show that the tax on plastics was not really for the benefit of the environment either?



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