Foreign Tax Policies to promote energy conservation
Description: a tax incentive policy, purpose and significance of energy conservation are areas of market failure, to overcome many obstacles, to be led by the Government to give appropriate economic incentives. Industrial sector energy, in all aspects of product life cycle, and all energy actors (governments, businesses, consumers, banks, etc.) barriers. The purpose of fiscal incentives is g
A tax incentive policy, the purpose and significance
Energy is a market failure in the field, to overcome many obstacles, to be led by the Government to give appropriate economic incentives. Industrial sector energy, in all aspects of product life cycle, and all energy actors (governments, businesses, consumers, banks, etc.) barriers. The purpose of tax incentives is to overcome these obstacles.
(1) businesses often unwilling or unable to high input, high-risk investment in energy research projects. Therefore, the Government finances have invested in this area.
(2) energy saving industrial enterprises in many cases is highly fragmented secondary investment activities. The existing capital market mechanisms tend to invest in energy development. States are so. And the uncertainty of energy prices, increased energy efficiency investment risk business. Therefore, there must be an appropriate fiscal policy incentives. Such as tax relief, preferential loans and guarantees.
(3) Many enterprises, especially SMEs, energy costs account for the small proportion of product cost, or higher energy costs to recover through price increases. This makes the lack of energy-efficient enterprise initiative requires effective incentives.
(4) new energy-saving products to market early, small-volume, high price. Through tax incentives, user subsidies, government procurement and other measures to promote its marketing.
(5) low-income families unable to invest in energy conservation. Need to provide subsidies.
(6) Energy efficiency is often not the end consumers in energy-consuming equipment and appliances the primary factor to consider. Need to take consumer subsidies and other incentives.
(7) business and consumer access to reliable information, high transaction costs. Government to provide information services.
(8) industrial products successfully entered the international market, trade barriers, to adopt the international standards. Formulate, implement energy efficiency standards to give financial support and economic incentives.
(9) business damage to the environment and other external costs should be internalized. The imposition of energy taxes and environmental taxes to reduce energy consumption and carbon dioxide emissions and damage to public health.
2 Classification and function of fiscal incentives
Fiscal policies to promote energy conservation, according to their function can be divided into two categories: First, reduce the energy cost of the investment policy to promote energy conservation, and second, to increase the cost of energy saving investment incentive policies.
2.1 reduce the energy investment tax policies
Financial provision has been included in 28 countries to energy-saving public budget. Financial provision for: the national energy technology research and development and demonstration projects, business loan interest subsidy and guarantee energy conservation, energy subsidies to low-income families, study and formulate energy policies and regulations, business energy audits, energy efficiency standards for identity development and implementation, energy information services, energy-saving publicity education, government agencies and energy saving.
Tax relief on the compliance requirements of energy-saving technologies and equipment, income tax relief, 23 countries have implemented; specific energy-saving equipment, accelerated depreciation; on the intended target of the enterprise or industry energy-saving tax breaks.
Loan offers low-interest loans for energy conservation projects or subsidized loans, have been implemented in 21 countries; on energy project loan guarantees.
2.2 The increase in energy costs and taxation policy
Specific fuel and electricity and different user energy tax and environmental taxes, increase energy costs for energy-saving investment, a tax reduction of energy consumption, reduce emissions of carbon dioxide and atmospheric pollutants. Europe, 12 countries have environmental taxes, usually carbon tax (carbon tax), the United Kingdom called the climate change levy, Germany called eco-tax. Energy taxes and environmental tax is a neutral tax, that is, the collection of such taxes while reducing income tax, to reduce the negative impact on business.
Management of energy taxes and environmental taxes and high cost may be low-income and the competitiveness of certain industries adversely affected, there are still controversial.
3, the implementation of tax incentives
3.1 combined with new energy-saving mechanism
Fiscal and taxation policies to promote energy efficiency and energy conservation are usually implemented new mechanisms. Implementation of energy-saving tax incentives is a necessary condition for the new mechanism and components. The new energy-saving mechanisms, including: demand side management, energy service companies, energy conservation voluntary agreements, industrial energy efficiency network, energy efficiency standards and labeling, government procurement.
3.2 Funds
Community Fund Community Fund is not fully rely on market competition in the areas of public services, safeguard public interests of a fund is a new energy-saving incentives. Public funds used to finance energy efficiency and renewable energy technology research and development, energy projects and low-income families. Funds are usually raised by a surcharge on electricity. In the United States, 25 states have set up welfare funds, the average electricity surcharge 1.1mills/kWh (1mill = 0.001 U.S. dollars). Public funds by the state government or non-profit organization management.
Energy saving funds is usually the government fund the establishment of a revolving fund, is a long-term, stable funding channels for energy conservation. The Thai government established the Energy Conservation Fund in 1992, now has reached 50 billion, is one of the world's largest energy funds. Funds mainly from oil revenue, the current annual funding 60 million ~ 80 million U.S. dollars. The Fund for the Thai Government's demand-side management programs. Energy Fund, energy conservation and alternative energy development by the Department of Management.
Energy Innovation Fund Innovation Fund shares through investment in energy services, energy companies, using guarantee funds, revolving funds and venture funds to provide energy conservation loans and loan guarantees. Energy, 29 countries have set up innovation fund.
3.3 The management of tax incentive policies and measures
Energy tax incentives related to energy conservation by government agencies and organizations to manage according to the law.
In Japan, business investment tax relief for energy-saving equipment by the Office of Resources and Energy, METI will enjoy tax incentives proposed by the target device list, start with the preparation of energy saving equipment manufacturers to prove that the equipment meets the conditions of the certificate of tax incentives to submit trade associations; Industry Association review submitted to Energy Conservation Center, Energy Conservation Center summary report after the Energy Resources Department for approval; If in doubt, Resources and Energy Agency and the relevant department or bureau and the Ministry of Economy Ministry of Internal Affairs, Ministry of Health, Labour, Land Transport, Environment Ministry and other departments in consultation; approval back to trade associations, and then send the user; user certificate with the tax authorities tax return.
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