Matching taxation principles with environmental policies
A HM Customs & Excise case study

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Page 3: The role of government

With this kind of scenario, governments have had to become involved at both domestic and international level. Not all governments are equally enthusiastic about 'getting involved'. In some countries, including the UK, some previous governments have believed economies work best when government intervention (in the form of ownership, control, legislation and regulation) in the economic activities of individuals and firms is kept to a minimum.

Such an approach is very different from that being taken today. Increasingly, governments are emphasising the link between the actions of individuals and organisations and their likely impact on the quality of life of present and future generations. Also, governments are looking to 'do something about it'. That has become their aim. Their main problem lies in how to achieve it.

HM Customs & Excise | Matching taxation principles with environmental policies