The government of New Zealand intends to levy an emission tax on methane and nitrous oxide gasses emitted by livestock through belching and farting. This tax scheme has never been implemented anywhere in the world before. The implementation of the "fart tax" on farmers is scheduled for 2025. This news was conveyed by the Prime Minister of New Zealand, Jacinda Arden, through a press conference held on Tuesday, October 11, 2022.
It is estimated that there are currently 10 million head of cattle and 26 million sheep in New Zealand. The large number of livestock is considered to have made a major contribution to climate damage in New Zealand through greenhouse gas emissions. Therefore, this policy was created as an effort to control climate change caused by gas emissions.
According to detikfinance.com, livestock groups and rural advocacy organizations expressed their rejection. They argue that taxation would disproportionately harm farmers and threaten New Zealand's small towns.
The government has pledged to reduce emissions and achieve carbon neutrality in New Zealand by 2050. Furthermore, the proposed proposal includes providing farmers with incentives to reduce emissions as well as redirecting tax funds collected to the agricultural sector through technology, research, and incentives.
According to Liputan6.com, the planned tax determination in 2025 is similar to the cap and tax scheme, where the levy payment provisions only apply to farmers who meet the herd size and fertilizer use thresholds. The government will set the levy every one to three years, based on advice from the Climate Change Commission and farmers.
