Friday 16 October 2015

Energy tax changes ‘will make firms more efficient’

Changes in the taxes regime will make businesses more energy efficient, according to Inenco’s More than Y report.

David Cockshott, Sales and Marketing Director at Inenco said: “It gives suitable incentive to reduce energy consumption… The more you use the more you pay.”

Mr Cockshott explained the changes will not cut taxes but make it simpler and is designed to be revenue neutral.

He added: "If they cut on one hand they will increase on another so don’t expect big tax benefits from that."

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Mr Cockshott expects "the most likely" outcome to be the scrapping of Carbon Reduction Commitment (CRC) and simplifying reporting to one single source of data.

Mr Cockshott said: “We believe it would be much more like the Climate Change Levy and that’s just a simple consumption based tax."

"This is good news for businesses who would not want a simpler, clearer, fairer tax regime but of course there are going to be some winners and some losers. The whole point of the review is to make it simpler and clearer."