There is a perception that the only meaningful achievement of this year’s COP27 summit is the agreement to set up a ‘loss and damage’ fund to cover the losses of developing countries caused by climate change-related disasters. Beyond this, no agreements were made that would take the world back from the path towards climate catastrophe.
In this context, it is worth asking about the role of tax regimes in shaping pro-environmental business and consumer behaviour. Alongside the introduction and continuous tightening of restrictions on greenhouse gas emissions, fiscal tools are a powerful means of shaping – or even forcing – desired actions towards halting climate change.
On the one hand, the legislator can introduce burdens in the form of taxes and charges that sanction environmentally negative actions. The carrot is tax incentives and reliefs related to climate-positive initiatives. There are not many of these in Polish tax law (for the time being at least), but it’s worth noting which measures can be used by taxpayers.
#MORE on the topic of report on the most significant changes under an amendment to the Polish Corporate Income Tax Act