New era. New plan
The Ex’tax Project brought together fiscal experts of Deloitte, EY, KPMG Meijburg and PwC. The group developed a plan to significantly decrease labour taxes in the European Union, while increasing taxation of natural resource use, pollution and consumption (in this case: carbon emissions, water, fossil fuels, electricity and VAT). Cambridge Econometrics modelled the impacts in 27 EU Member States.
The results, published in the 2016 study New era. New plan, show that switching taxes from labour to pollution and resource use could:
- increase GDP levels by 2%
- create 6.6 million more jobs
- cut carbon emissions by 8.2% by 2020 and
- save € 27.7 billion on the energy import bill over a 5-year period.
