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Environmental levies may rise for some firms

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An amendment to the climate change levy could mean that some larger businesses pay more in green taxes.

Firms that alter their business operations to include environmentally responsible measures have been given a 80 per cent discount on the climate change levy.

However, announcements made in the pre-Budget Report will see that reduction in the levy lowered to 65 per cent as of April 2011.

Businesses that sign a climate change agreement with the government can claim a cut in the levy charge if they implement environment-friendly improvements to the way they run their operations.

Given that this is the first time the reduced climate change charge has been amended in a decade, some analysts believe that the government may be examining the possibility of dropping it altogether.