New Zealand mulls levying tax on cattle burps, dung to fight climate change

Follow us on Google News:
 New Zealand mulls levying tax on cattle burps, dung to fight climate change
Image source: © Wirestock | Megapixl.com

Highlights

  • New Zealand recently came up with a proposal to tax livestock burps and dung.
  • The proposal is to get the “agricultural emissions-pricing system” into force by 2025.
  • Jacinda Ardern, the Prime Minister of New Zealand, also lent her support to the proposal to tax agricultural emissions.

In its efforts to fight climate change, New Zealand recently came up with an unusual proposal to tax livestock burps and dung. A consultation which began a couple of weeks ago has proposed a tax for agricultural emissions, including animal burps, urine, and dung. The proposal is to get the “agricultural emissions-pricing system” into force by 2025.

According to the consultation document, the New Zealand government expects this revenue to get “recycled back into agriculture sector through new technology, research and incentive payments to farmers”.

The Prime Minister of New Zealand, Jacinda Ardern, was also supportive of the proposal. "This is an important step forward in New Zealand’s transition to a low emissions future and delivers on our promise to price agriculture emissions from 2025," Ardern said in an official statement.

“No other country in the world has yet developed a system for pricing and reducing agricultural emissions, so our farmers are set to benefit from being first movers,” she added.

The document mentioned that carbon dioxide is produced from urea, while nitrous oxide arises from livestock dung and urine. Methane is emitted through belching, it also stated.

Meanwhile, the authorities in New Zealand believe that greenhouse gas emissions from agriculture account for over half of the country’s gross emissions.

When is agricultural emissions pricing expected to begin?

The consultation document has set 1 January 2025 as the date for agricultural pricing to begin. There was a wide view that a simplified or basic farm-level pricing system could be implemented by 2025.

“While the Government is committed to implementing agricultural pricing in 2025, a lot of work is required to implement a farm-level pricing system by 2025. The proposal is therefore to develop an interim processor-level levy system as a transitional step, in the event a farm-level pricing system is not possible in 2025,” the document noted.

Disclaimer

The content on this website, including, but not limited to, any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (“Content”) is a service provided by Kalkine Media New Zealand Limited (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide financial advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests users seek financial advice from a financial advice provider, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all liability to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without any express or implied warranties of any kind. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit a source wherever it is indicated or is found to be necessary or desirable.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK