The Tax Institute is calling for the Federal Government to double the duration of its planned two-day Tax Forum in October, and place the carbon tax at the top of the agenda.
Tax Institute Senior Tax Counsel Robert Jeremenko said that now the Government has released details of its carbon tax policy, tax experts need to be involved in the finer details, especially those relating to design, implementation and administration.
“The proposed carbon tax and emissions trading scheme must complement the existing tax system and not increase compliance costs, impede efficiency or add substantially to the overall tax burden.”
According to Jeremenko, efficiency, equity and simplicity must be the goals of any tax system.
“Now is the time for meaningful consultation and engagement with tax professionals. It’s time for the Government to engage tax experts and the October Tax Forum would be the ideal vehicle.”
The carbon tax policy, detailed by the Federal Government yesterday, is broadly in line with principles raised in the Henry Review of the Australian tax system which said the quality of the environment was critical to the nation’s wellbeing, Jeremekno said.
“The Henry Tax Review found that environmental taxes could be an effective mechanism to reduce pollution or consumption of a natural resource. The Henry Review also made the point that while corrective taxes like this can be effective, they can also be difficult to design and implement.”
The Tax Forum will be held at Parliament House in Canberra on Tuesday 4th October and Wednesday 5th October.