Posts tonen met het label taxation. Alle posts tonen
Posts tonen met het label taxation. Alle posts tonen

vrijdag 27 april 2012

Seeing red about diesel

It's just unbelievable. VVD (sort-of-libertarian), CDA (christian centrist) and PVV (right-wing populist) just spent weeks haggling over a new budget. Finally the whole thing blew up, we're getting new elections in September, but in the meantime CDA and VVD managed to agree with a bunch of other parties, including the Green Left (yes, that's their name) and the sort-of-liberal D66, within 48 hours. Was it really that easy? What have they been doing in those past weeks?

Anyway, part of the deal is a tax increase on so-called 'red diesel', i.e. diesel with a lower tax rate than regular diesel. It is only allowed in such machines as tractors, road maintenance equipment - and all non-recreational ships. No wonder Dutch fishers are up in arms. Fuel is one of the major expenses of Dutch bottom trawlers.

I hate to say this, but as an economist I don't see a reason to exempt any economic sector from a tax, let alone a tax on fossil fuels. If farmers and fishers pay a lower tax rate, why not trucks? Or salesmen? As we're on it, why not abolish the tax altogether? Oh wait - there's state coffers to fill and negative externalities to tax. But in any case, I think we should have a level playing field for all, and that includes a similar tax rate for all.