Nowadays many people argue about the possible solutions to the problem of air pollution and high traffic, especially in large cities. Therefore, a question arises whether an increase in the fuel tax would be an effective and justified measure. As for me, I am convinced that there are equally many advantages and disadvantages to such a government decision. So, in this essay I will discuss some reasons why I think so.
On the one hand, an increase in the gasoline tax may lead to a decrease in automobile fuel consumption. This enables us to reduce harmful emissions into the environment, into the atmosphere. Moreover, additional funds received from taxes can be directed to the development of ecological transport and infrastructure for cyclists and pedestrians, which will help to reduce traffic. Thus, a number of advantages of high fuel charges are obvious.
On the other hand, an increase in the tax may lead to a widespread increase in prices for goods and services, as producers will spend more on transportation costs. As a result, low-income people’s financial situation will worsen and it will be more difficult for them to move. This can exacerbate social differentiation – the car will be available only to the rich. For countries with a high level of social instability, this is a serious threat.
To sum up, I am sure that it is possible to find many positive aspects of a high gasoline tax. Nevertheless, we must not forget about the risks and consequences that this can lead to.