Environmental Fiscal Reform makes us think about the impact we produce on the environment

Interview with Marian Mraz from Slovakia, international consultant within the UNDP-GEF Project "Strengthening capacities to undertake Environmental Fiscal Reform to meet national and global environmental priorities".

Mr. Mraz, what is the substance of a reform meant for environmental fiscal fees and why do we need it?

The world should pay for all the resources it is using. It is the key element for the people to be aware of how they use the resources. The environmental fiscal reform makes us think about the impact we produce on the environment and on the existing resources, as well as on how we use these resources. An essential thing related to this reform would be for us to provide certain incentives to people who protect the environment, to use certain information so as to try to change the population behavior. The ultimate aim is not only to collect revenues and taxes, but also to determine some changes in people's behavior.

People get frighten when they hear about taxes, regardless of the context in which such fees are tackled. How can we convince them that such a reform is necessary?

A very important thing, just like in any other fiscal reform, is to inform the public. The reform itself does not mean only the modification of the fiscal legislation, but it should lead to reducing certain existing taxes. For instance, the income tax is rather high. Attempts may be made to reduce certain taxes so as to increase other. At the same time, the tax basis should be developed in such a way as it would not be a bigger burden, it should actually decrease. Thus, certain changes may occur in people's behavior and in this way a number of objectives would be achieved, such as reducing pollution, efficient use of resources. Meaning that the world automatically would change its behavior and this some additional benefits would be obtained. Fewer negative effects would be produced with environmental impact.

Slovakia, the country you come from, may it be an example of environmental fiscal reform for us? 

It is an interesting question. Slovakia, in my opinion, is a good example for a comprehensive fiscal reform. We did it in 2004. But unfortunately, this reform was not finished and did not include this movement or switch to enforcing certain environmental fees. Thus, Slovakia may serve as a good example of fiscal reform, but not necessarily in the area of environmental taxes. I do believe a lot in these ideas and the EU member states could serve as example for an environmental fiscal reform. The following countries may be mentioned in this respect, Holland, Sweden, Denmark. Within the Central European countries - the Czech Republic could serve as an example of powerful boost for an environmental fiscal reform, their most important success was the enforcement of the UN Energy Directive.