Australia turns out to be the first developed country nation to abrogate carbon tax after almost a decade of political dispute. The introduction of carbon tax had caused an enormous amount of resentment among people and business firms. The abolition of the carbon tax formed a significant part of Tony Abbott’s election campaign. Jettisoning the tax is the foundation of Tony Abbott’s economic stratagem for the country.
The abolition of the carbon tax cannot be taken as conquest. It might be a wining aspect for the government but it engenders the defeat of the common good of the nation.
If we examine in order to determine was the carbon tax was yielding results, we see that the climatic change is inevitable without the taxation on the emission. The greenhouse gas emission has an influence on the depleted amount of rainfall and various amount of climatic changes. Studies levy that more than 60% of the gas emission has to be curbed to restrain the increase in the temperature and cause a disruption in the eco-system.
The carbon tax revocation may provide some comfort in the beginning with the reduction in the electricity bills for businesses and households respectively but not so in the long-run.
Australia’s economy will be adversely effected by obliterating the carbon tax. Australia is highly dependent on coal for its power and it is likely with this abolition, the coal power will surge within a decade and it will pilot to a greater cost of energy.
Why is carbon tax necessary?
Carbon taxation ensures that business firms will consider the amount of carbon emission into their decision making process. It instruments them to transpose from the former technology to a new technology, which will ascertain a lower amount of emission.
This kind of taxation was imposed on other menacing gas emissions, like CFC (Chlorofluorocarbon). Without such pricing, companies would have the flexibility to produce any amount of carbon emission. The carbon tax would have helped to fabricate a world repressed of carbon.
A substantial amount of Australia’s business depends on non-renewable energy generation. If Australia’s trading partner like China or US move to achieve a low-carbon economic system, Australia will definitely incur hardships working with them.
How will repealing save household and business?
The coalition government is forging companies to promptly take up cost saving policies. The power is estimated to diminish by 8% and gas prices by 6%. The Prime Minister have guaranteed a total saving of $550 per annum and Greg Hunt evaluated that this would indicate a saving of around $3000 for each family over the next few years.
The termination of the carbon tax will taper the cost enforced on the gas and electricity firms. This would result in the shrinking of the wholesale electricity cost.
According to the government, the tax on carbon is detrimental. They would inflate the bills of the household and business to a great extent. It is also argued to be crushing job opportunities by ravaging industries.
The Australian Competition and Consumer Commission (ACCC) is supervising prices and profits of the paramount sectors of the economic system of Australia, especially the electricity and gas companies. And the government debates that Australia will thrive better without the carbon pricing.