EU 'to revise tax rules to encourage use of renewable energy'

02 Jun 2010
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European Union Renewable energy systems could be set to become more popular, after a media outlet reported the EU is planning to revise the energy taxation system in Europe.

Reuters has obtained an EU briefing document which argues that the existing taxation rules "discriminate against" renewable energies.

The international body is understood to be planning to implement an energy tax that would apply to all member states, under which renewable and sustainable sources of energy would drop in price.

Emer Traynor, a spokeswoman for the European Commission, said the EU wants to restructure rather than raise taxes in a way that is easy for people to understand and manage.

"Consumers would be able to reduce the amount of tax they pay by changing their behaviour and being more energy efficient," she commented.

Such a move may also enable indebted countries such as Greece and Spain to take positive action to reduce their budget deficits without hiking income taxes.

This comes shortly after the European Commission noted that the global financial crisis has made it easier for EU members to meet the existing targets for reducing carbon emissions.
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