Reforming the Tax System to Promote Environmental Objectives: An Application to Mauritius
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Summary:
Fiscal instruments are potentially among the most effective, and cost-effective, options for addressing externalities related to poor air quality, urban road congestion, and greenhouse gases. This paper takes a case study, focused on Mauritius (a pioneer in the use of green taxes) to illustrate how existing taxes, especially on fuels and vehicles, could be reformed to better address these externalities. We discuss, in particular, an explicit carbon tax; a variety of options for reforming vehicle taxes to meet environmental, equity, and revenue objectives; and a progressive transition to usage-based vehicle taxes to address congestion
Series:
Working Paper No. 2011/124
Subject:
Environment Excises Expenditure Fuel tax Greenhouse gas emissions Public expenditure review Taxes Vehicle taxes
English
Publication Date:
June 1, 2011
ISBN/ISSN:
9781455263417/1018-5941
Stock No:
WPIEA2011124
Pages:
39
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