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What Will Be The Supply Chain Knock On Effect From The Carbon Tax
The upcoming carbon tax is supposed to make the top 500 contributors to Greenhouse emissions consider the wisdom of their ways and make changes in order to reduce their carbon footprint and help save the environment. However, in reality these big companies will hardly feel the pinch of the carbon tax as these tax costs will be passed down to the average consumer through the supply chain.
While no one disputes the need to reduce the amount of carbon dioxide and other greenhouse emissions being shot into the atmosphere is a worthy and necessary endeavor, there is some dispute about whether charging a high carbon tax is going to be enough to make the worst violators clean up their act. Even the Government admits that these tax costs will not really be paid by the offending companies but, in the end the carbon tax will be paid by the average citizen in higher costs.
In addition, though the Government expects no rise in the cost of food, many fear that consumers will also be paying higher prices for their groceries as gas companies pass on their carbon tax bill to to individual petrol customers who then in turn charge more for gas at service stations, and those that ship goods and foods to the market will then pass on the taxes to consumers.
This will include a 10 percent increase in electric and 9 percent increase in gas bills in the first year alone. The carbon tax will have a negative effect on consumer spending which in turn will have a negative effective on the overall Australian economy which may end up in lost jobs and less money for the average family to live on.
Knock on effect from the carbon tax will be felt by all those across the country except for those companies that the carbon tax was actually designed for.
In addition, the knock on effect of the carbon tax will affect other countries as well as developing countries who rely on Australian coal exports will find themselves paying higher coal prices once the carbon tax takes effect.
Despite the fact, that Government keeps assuring the public that knock on effect of the carbon tax will only effect consumers in a somewhat limited way, many fear that the rise in prices will leave them just scraping by and leave the poorest of Australian consumers destitute. In the end, everyone will just have to wait until July when the carbon taxtakes effect to see just how affected the general public will be and whether or not the carbon tax actually has the desired effect on reducing businesses carbon footprint or if the public will end up footing the bill for the carbon taxwhile the companies continue with business as usual.
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