The functions and principles of environmental tax

The issue of the functions of tax continues to be a subject hotly debatable. In scientific community, there is still no consensus on the content and composition of tax functions. The relevance of this problem stems from the fact that it has not only theoretical but also practical aspect. The fact of the matter is that functional definiteness predetermines the peculiarities of the construction of tax and the scope of their application. A clear idea about the whole range of functions ensures correct development of the state tax policy. Currently, Russia is facing a difficult decision concerning the introduction of carbon tax. It is assumed that the amount of tax at the first stage will be $15 per ton of greenhouse gases; at the second stage, $35 per ton. The way it will affect environmental and economic processes remains questionable. The author identifies the following functions of ecological taxes: fiscal, burdensome, pricing, deforming and oppositional (reactionary). In accordance with the fiscal function, the ecological tax provides revenues to the state budget. The essence of the burdensome functions lies in the fact that the tax puts the burden of unproductive costs on taxpayers. The pricing function means that tax always increases the price of taxable goods and related products. The deforming function means that tax distorts allocation of resources in the economy and also limits the level of business activity. The opposition function implies that tax infringes the rights of taxpayers and, therefore, weakens loyalty to the state; furthermore, it increases the resistance of taxpayers to introduction of a new tax, creates social and political struggle against the increasing tax burden. All the ecological taxes are divided into fiscal and corrective, depending on the purpose of regulation. A priority goal of environmental taxes should be reduction of the negative effect on nature. Therefore, we must pay attention to the ways of strengthening the deforming function of tax. With this in mind, the author formulates the following principles for setting environmental taxes: 1. Tax should be levied directly from the source of pollution. 2. We are often unable to collect environmental taxes from the source of pollution for technical reasons so, in this case, it is necessary to use objects that are associated with it. 3. It is necessary to provide alternative activities, technologies, goods, or resources that have less negative impact on the environment. 4. The tax rate should depend on the level of pollutants. 5. It is mandatory to consider the impact of tax on the solvency of the taxpayers. 6. The tax rate should be commensurate with the harm caused to the environment; 7. The tax rate may be higher than the amount of losses due to ecologically harmful activities of the taxpayer, but not below them. 8. Taxes must influence the behavior of taxpayers in both the short and long term. 9. Environmental taxes must be approved by taxpayers and be combined with other environmental policy instruments.

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