GREEN TAX REFORM ON THE POLLUTER’S INCOME

Abstract

Due to their extrafiscal function, taxes can influence market behaviors and contribute to the adoption of a sustainable lifestyle. Thus, this study addresses extrafiscality and its ability to correct negative market externalities as an indirect means of shaping behaviors. The general aim is to clarify the most effective way to achieve the effectiveness of environmental tax public policy, considering the issues of regressivity and the passing of the cost of tax reform onto the final consumer. To this end, it highlights the need for a green fiscal reform and discusses the choice between income taxation and the use of tax selectivity. Regarding methodological aspects, the approach is qualitative; in terms of objectives, it is explanatory; and with respect to the method, dialectical reasoning predominates. The study relies on bibliographic and documentary analysis and is theoretical, given the chosen data collection instruments. Furthermore, this research is of a legal-projective type and has a legal-sociological perspective. In conclusion, it is determined that the solution lies in direct taxation on the producer’s income, promoting tax benefits for those who do not exceed the best available environmental standards.