Tag: climate_change

Tax on company cars causes increased carbon emissions!

I was speaking to a sales rep yesterday who was driving a company car. He told me about the Irish government’s scheme to tax people for receipt of company cars. It is called Benefit in Kind (BiK).

Basically, if your employer gives you a company car, you are liable to pay 30% of the original market value of the car in tax (the original market value includes the amount the government already collects in VRT!).

However, if you do more than 15,000 per annum, the amount of BiK you have to pay drops. The more mileage you do, the less BiK you have to pay (up to a ceiling at 30,000 miles).

Sounds fair, you might say. These people are using the cars the company gave them.

Possibly, until you realise that what this law does is incentivise company car owners to use their cars more to drive to meetings (for example) where they might otherwise have taken a more carbon friendly alternative (telecon anyone?). The rep I was talking to said he will preferentially drive anywhere to get his mileage up!

If you want to tax company cars, why not do it on the basis of their carbon footprint (or engine size if that rating isn’t easy to come by). Something like €500 for cars 1.6L and less; €2,500 for 1.6L to 2L; €6,000 for 2L to 3L and €12,000 for 3L and above index linked.

An inconvenient truth

I watched Al Gore’s movie, An Inconvenient Truth last night and, I must say, it was very good. Hopefully it will serve as a wake up call to those who dismiss climate change as a myth. Unfortunately though, I think those who watch it will do so because they have an interest in this area and those who don’t believe in climate change will never watch it.

Some interesting facts which came out of the movie – for instance Al debunks the notion that scientists disagree about climate change. He pointed out that in a study of over 900 scientific papers on global warming (a randomised selection of 10% of all scientific papers published in the area in the last 10 years) not one scientific paper came out against global warming.

Whereas the same study looked at over 600 newspaper reports on global warming and 53% of them came out against climate change.

In the same way that the tobacco industry tried to tell us that smoking is not bad for our health, it looks like the petroleum industry is now trying to debunk global warming and right now, it is winning the PR war.