EU Parliament recommends Ex’tax

3 Dec 2013

November 20th 2013, European Parliament and the Council have signed into law the Decision on a 7th EU Environment Action Programme (EAP). The Plan is called "Living well, within the limits of our planet" and it is a framework to guide EU policy action on environment and climate policy for the next seven years.

The decision calls for Member States to put in place 'the right conditions to ensure that environmental externalities are adequately addressed'. The Ex'tax principle is mention in article 76:

[Member States need to consider] 'fiscal measures in support of sustainable resource use such as shifting taxation away from labour towards pollution'.