British Columbia's Carbon Taxation Policy

Introduction3

Discussion3

Purpose of Taxation3

Overview of the Carbon Emission Problem5

British Columbia's Carbon Tax5

Background of the Topic6

Early Implementation6

Carbon Tax rate of 2012 According to Fuels type7

A 5 Years Review of Carbon Taxation Policy8

Conclusion10

References11

British Columbia's Carbon Taxation Policy

Introduction

A tax is a payment made to the government by an individual who has earned certain amount during a year. Income tax is a most important basis of income to the government. In other words it is an amount charged by a government on products, income, or activities. There are two types of taxes direct tax (which is charged on personal and corporate income directly) and indirect tax (which is charged on the prices of services and goods).

This assignment examines a newly introduced tax obligation known as carbon tax. In addition, we are going to elucidate what this tax actually is, its background and its development.

Discussion

Taxation is a set of rules as in when it should be paid, who pays the tax to whom and how much is the tax to be paid. Taxation is a process or means by which the ruler increases income to settle the required expenses of government, through its law-making body. Defined in another way, it is a method of allocating the expenses of government among those who are privileged to have the benefit of its facilities and must, therefore, bear its load.Tax is also considered a tool of tranfering accumulated wealth from rish indiivudals to the poor people.

Purpose of Taxation

The idea of taxation is to generate profit for government expenses. One of the most important uses of taxes is to generate profit for public goods and services, such as street cleaning and street lighting. Public services and goods does not permit a defaulter to be excluded, or permit elimination by a consumer, there can no market in the good or service exist if it is not financed by some entity, and so the financial assistance by the government is to be given, which are likely to finance themselves largely through taxes collected from those individuals who fall under the category of 'tax payer'. Government financial functions are not possible without taxation (Government of British Columbia, 2008).

Apart from this, taxation can be a powerful means in order to attain the objectives of economic development and the goals of social progress. Local industries may be defended through taxation by enforcing high customs duties to foreign goods. Moreover, taxation can also be used to decrease inequalities or inequities in income and wealth by progressively higher taxes as in the case of estate and income tax. So based on the earlier premises, it is clear that taxation is certainly the lifeblood of the state, without which the existence of the state will be put to danger.

An advantage to taxation surviving is in the terms of public goods. There are a number of goods that private industry has zero incentive to provide because they usually aren't money-making, such as police departments, a military, transportation infrastructure, a court system, provision of ...