Bovine Flatulence Tax Proposed In Denmark

by Ulrika Lomas, Tax-News.com, Brussels

16 February 2009

The Danish tax commission has proposed levying taxation on farmers rearing cows and pigs as part of their long-term eco-friendly fiscal policy.

Under the proposals farmers would be forced to pay an annual tax of DKK600 (USD103) per cow to offset the negative environmental impact of the methane gas emissions they produce. The tax commission has argued that because an average cow produces 4 tons of greenhouse gas emissions a year, more than the 2.7 tons which an average car produces, they should also be subject to taxation.

The plans are part of a larger scheme to reduce harmful emissions. Critics note that if the measures were to go ahead farmers would be subject to far more punitive tax measures then their industrial counterparts.

The tax commission states that the proposals, if adopted, would generate revenues of around DKK400m (USD68.5m) annually. Farmers have challenged the tax, stating that the idea of a tax is to change behaviour to reduce gas emissions; the tax on animal emissions will have no effect, argued one farmer, other then to put farmers out of business. Cows will produce emissions regardless of whether they are taxed.

The proposed measures are subject to parliamentary approval.

Recommended