Chile signs off carbon tax

Chile enacted a tax on carbon emissions on Friday, making it the first South American nation to do so. It’s part of a swathe of tax reforms which kick in […]

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By Vicky Ellis

Chile enacted a tax on carbon emissions on Friday, making it the first South American nation to do so.

It’s part of a swathe of tax reforms which kick in gradually over the next four years.

At a signing ceremony the President of the Republic, Michelle Bachelet said the whole tax package would mean “we can get down to work and together return to a higher growth path.”

From next year, taxes on car emissions will apply to new private vehicles.

By 2017, the tax on emissions from power stations will crank into motion, with power stations measuring their emissions.

In 2018 the taxation will hit thermal power stations with 50 megawatts (MW) or more, according to Reuters.

Charges will be $5 per tonne of CO2 emitted, with the Chilean Government expecting to raise a modest $160 million (£99m) from the measure, reported the news agency.