B.C. plan would shift heavier tax burden to industries that pollute

VANCOUVER (Nov. 23, 1999) — The British Columbia government is considering ways to link tax rates to the amount of pollution and waste businesses generate.

Environment Minister Joan Sawicki said a discussion paper released yesterday by the New Democratic government “provides a focused starting point for a public discussion on how some aspects of our tax system might better reflect environmental impacts while promoting job creation and recognizing companies that show environmental leadership.”

Tax-shifting is part of the provincial Green Economy Initiative announced in this year’s budget. Three Simon Fraser University researchers were appointed last June to develop a discussion paper that examines shifting taxes away from productive activities, such as employment and investment, and toward those that waste natural resources or cause pollution.

The discussion paper suggested possible environmental taxes, including tolls for such public goods as roads, bridges, and provincial parks; charges on resource use and final products that “harm” the environment; and per-unit charges for water, air, and solid-waste pollution. The paper suggests that taxing pollutants directly, as opposed to indirectly through product and resource charges, would likely be more effective in reducing pollution.

Sawicki said she would discuss tax shifting with federal Environment Minister David Anderson at an environment ministersÕ gathering in Alberta on Nov. 29-30.

Understandably, environmental groups were encouraged by the idea.

“We cannot continue to jeopardize public health and our climate by allowing our atmosphere to be a free dumping ground,” said Gerry Scott, Climate Change campaign director for the David Suzuki Foundation. “It’s crucial to find ways to discourage air, water, and land pollution. Looking at ways to shift the tax burden is a good way to start.”

The discussion paper is available online at www.fin.gov.bc.ca on the Internet. Or the public can call toll free 1-800-663-7867 (in Vancouver, 660-2421) and ask to be transferred to Andy Robinson at 387-9011. The government will then review feedback from all sources and develop its response to the paper next spring.

For more information, visit the Ministry of Finance web site: www.fin.gov.bc.ca