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HFC tax could cost Euro1.2bn

EUROPE: A proposed tax on the sale of HFCs in Europe could cost companies and consumers up to €1.2bn per year, according to refrigerant producers.
HFC tax could cost Euro1.2bn
Following the recent proposals by the European Parliament's environment committee for a CO2 equivalent tax of up to €10/tonne, the European Fluorocarbon Technical Committee (EFCTC) warned of the negative impact that this would have on industry already struggling in a depressed market.

'With the EU struggling to recover from the economic crisis, it is unbelievable that the European Parliament have introduced a new unilateral EU tax on EU business
and consumers,' said EFCTC spokesman Nick Campbell.

'It can be estimated that this tax could cost EU companies and consumers up to €1.2bn per year. This will clearly have a negative impact on companies, especially SMEs that make up the majority of refrigeration and air conditioning users as well as users of their products. Furthermore, after the HFCs are sold, they are used for many years in enclosed systems and can be recovered, so such a tax on sales has no direct environmental benefit.'

He further noted that 'such a tax is totally unnecessary as the phase down process
will have the desired environmental impact of reducing HFC use and emissions in the EU.'

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