US firms reject tax breaks for green products

EU committee of American chamber of commerce urges cautious, flexible, approach on IPP

American firms operating in Europe have rejected a key element of European Commission proposals for an integrated product policy (IPP). In a new position paper, the EU committee of the American chamber of commerce says a plan to introduce lower sales tax rates on ecolabelled products is "backward looking and innovation-stifling".

"It encourages manufacturers to focus on present solutions rather than searching for quantum leap improvements" in their products, the committee says. The plan should be avoided as a "very arbitrary way of interfering with market forces," it says, and replaced by "more flexibility in the assessment of the environmental quality of products."

Please sign in to access this article. To subscribe, view our subscription options, or take out a free trial.

Please enter your details

Forgotten password?

Having trouble signing in?

Contact Customer Support at
or call 020 8267 8120

Not a subscriber?

Take a free trial now to discover the critical insights and updates our coverage offers subscribers.