MADRID: Economic Cooperation and Development spotted that Spain can generate revenue between EUR7.2bn (USD7.94bn) and EUR9bn in 2018, while having a lesser impact on growth rates than other revenue-raising measures. Spain’s green tax revenue has fallen to among the lowest in Europe, at 1.6 percent of GDP in 2012.
Spain must introduce higher green taxes to fund measures to boost economic growth urged by the Organization for Economic Cooperation and Development (OECD).
“Spain has visibly improved its environmental performance since the turn of the century,” OECD Secretary-General Angel Gurría said. “Spain must now ensure that its economic recovery does not undo that work. There is scope to both strengthen and simplify environmental policies to achieve growth that is robust, inclusive, and green.”
According to the OECD’s new Environmental Performance Review of Spain, the country has not fully used the potential of environmental taxation to achieve environmental objectives and to help reduce public debt.
In addition, taxation of energy products should be revised to ensure that the tax burden on natural gas and coal reflects their respective contributions to carbon dioxide and air pollutant emissions, the OECD said. The report also urged Spain to rein in exemptions and deductions relating to transport fuel taxes. Viewing that Spanish government is considering a number of reforms to its environmental taxes, including a reform of vehicle taxes and the introduction of a nationwide waste tax.
