Australia introduces carbon tax
2 July 2012 7:35 AM GMT
Australian government on Sunday introduced a controversial carbon tax that businesses will have to pay for their emissions, amid protests and apprehensions that it will hamper the economy.
Beginning from Sunday, over 300 businesses will be made to pay USD 23 for every tonne of carbon emission they produce, with Prime Minister Julia Gillard stating that putting a price on carbon will help protect the environment and strengthen economy.
The businesses will receive some compensation in the form of tax offsets and credits, but still say they will have no choice but to pass on the cost to consumers, a report in ABC said.
The government is also compensating low-income earners and says life will go on for Australian households.
Defending the levy, Gillard said when the Goods and Services Tax [GST] was introduced, she was very concerned about how the it would impact households, but Australians have come to accept it.
'People have already seen pension increases and family payment increases and family payment increases and this assistance to families around the country will continue.
Businesses have got themselves ready for carbon pricing. New investments are being made,' she said.
The Australian capital also witnessed street protests against the tax. However, opposition leader Tony Abbott said the carbon tax will have a negative impact on the Australian economy.
He told the Liberal Party's national conference in Melbourne on Saturday that the Australian public can be '100 per cent certain' when there will be no carbon tax under a government he leads.
'It will raise every family's cost of living, it will make every job less secure but it won't help the environment,' he said commenting on the new levy.
Beginning from Sunday, over 300 businesses will be made to pay USD 23 for every tonne of carbon emission they produce, with Prime Minister Julia Gillard stating that putting a price on carbon will help protect the environment and strengthen economy.
The businesses will receive some compensation in the form of tax offsets and credits, but still say they will have no choice but to pass on the cost to consumers, a report in ABC said.
The government is also compensating low-income earners and says life will go on for Australian households.
Defending the levy, Gillard said when the Goods and Services Tax [GST] was introduced, she was very concerned about how the it would impact households, but Australians have come to accept it.
'People have already seen pension increases and family payment increases and family payment increases and this assistance to families around the country will continue.
Businesses have got themselves ready for carbon pricing. New investments are being made,' she said.
The Australian capital also witnessed street protests against the tax. However, opposition leader Tony Abbott said the carbon tax will have a negative impact on the Australian economy.
He told the Liberal Party's national conference in Melbourne on Saturday that the Australian public can be '100 per cent certain' when there will be no carbon tax under a government he leads.
'It will raise every family's cost of living, it will make every job less secure but it won't help the environment,' he said commenting on the new levy.
Next Story
