The Carbon Tax Scheme (CTS) is an indirect tax levied on users of fossil fuel and was implemented in January 2012. The Carbon Tax is based on the Economic Principle of Negative Externalities. Negative externalities are costs to the society that is created when goods and services are produced. The negative effects of these activities are shouldered by the society so payment for that cost from the parties that are liable is widely believed to be the appropriate approach for managing it. In the case of fossil fuel use, users of electricity from these sources are taxed based on the amount of Carbon Dioxide emitted into the atmosphere.
This report is submitted for the purpose of identifying how the Company, a food and beverage conglomerate operating in South East Asia and the Pacific, can prepare itself for the implementation of the CTS. In particular, it examines why the following questions are critical to the Company using literature sourced from the internet. The “readiness” questions are: ...