Friday 26 April 2013

US ‘best at pushing firms to be green with taxes’

The United States is the best when it comes to pushing corporate firms to be more sustainable with taxes, according to new research released by KPMG yesterday.

In a new Green Tax Index ranking 21 countries which are most actively using green tax codes, the USA came first for its “extensive and long-established programme of federal tax incentives for energy”. These include specific incentives for energy efficiency, renewable energy and green buildings.

The United Kingdom, Japan, France, South Korea and China were also among the leading countries using tax to push firms towards green behaviour.

John Gimigliano, principal-in-charge of sustainability tax in the Washington National Tax practice of KPMG said: "Japan, for example, tops the rankings in its promotion of tax incentives for green vehicle production, while the United States favours a comprehensive system of renewable energy tax incentives. As a result, we're seeing more green cars coming out of Japan and dramatic growth in the U.S. renewable sector."

Out of more than 200 individual tax incentives and penalties identified in the Index, at least 30 of these have been introduced since January 2011. KPMG says this reflects the “quickening pace” of green investment globally.