Principles of an Ecological Fiscal Reform

Abstract

Ecological fiscal reform is concerned with the utilization of taxes in order to meet environmental objectives. Entirely or in part, taxes are therefore functionally applied as market-based instruments to influence behaviour. From a legal point of view, public contributions relevant in this context can be classified according to the following definitions (see Figure 1). In this classification, taxes and causal contributions constitute the public contributions.¹ Whereas tax liability is unconditional, causal contributions are linked to a service provided to the contributor. Depending on whether the contributions are aimed at raising revenues and/or influencing taxpayer behaviour, a distinction is made between revenue-raising contributions and incentive contributions. Contributions with an effect on public revenues and without any intention to modify the behaviour of taxpayers are genuine revenue-raising contributions. Contributions are of a mixed nature if they raise additional revenues but also aim at an incentive-based target and have an incentive effect (e.g. tobacco tax [art. 41^bis para. 1 lit. c of the Federal Constitution (FC)], alcohol tax [art. 32^bis para. 2 BV]). Contributions with absolutely no effect on revenue but which aim at an incentive-based target and have an incentive effect are genuine incentive contributions. If these are due unconditionally, they are genuine incentive taxes. If the revenue-raising objective were to be considered an indispensable element of the definition of taxes,² the relevant term (instead of genuine incentive taxes) would be the genuine incentive contributions unconditionally due.