ABSTRACT
In order to tackle the serious problem of the eutrophication of surface waters from over-application of nutrients and insensitive management of manure, the main recommendation in agriculture is that Value Added Tax (VAT), or a similar tax, be imposed on fertiliser and feed. The VAT system requires information on inputs and outputs, so that little extra documentation would be required. In addition to information, there are other conditions which need to be met if markets for 'green' products and services are to function efficiently. Industries of a more innovative nature may experience difficulties in raising capital due to the uncertainties surrounding their potential for commercial success. Tax revenue which would have been used to provide environmental services would be released for other purposes, such as reducing other taxes. In the construction sector, environmental damage can occur when new buildings intrude on either a scenic landscape, or when new buildings do not fit in with existing structures.
