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Cow Farts are about to be taxed in New Zealand

2023.03.15 18:10:10 Steven Seo
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[Cow. Credit to Pixabay]

Since the announcement of the introduction of the ‘world first’ levy on methane and nitrous oxide emissions from New Zealand's former Prime Minister, Jacinda Arndern, on October 11, 2022,  angry Kiwi farmers' protests are getting tough. 

Angry Kiwi farmers held the first protest against the so-called ‘fart tax’ on the 20th of October 2022 in Wellington,  New Zealand’s capital, and it is spreading to Auckland and other major cities by more farmers. 

The farmers rode on tractors and other farming vehicles, blocking cities, streets, and pedestrians.

The furious farmers accused the fart tax of stinks and made many signs, one of which read “FART TAX MY ARSE”. 

"Most farmers have had enough," said one protester in Wellington. 

"It's getting hard to carry on farming, and this government isn't supporting us—it's tough to have more of these rules now."

Bryan McKenzie of protest organizers Groundswell NZ said the tax was "punitive" and "an existential threat to rural communities."

But this incident was not the first time a protest against the fart tax since the last 20 years. 

The government had their first attempt to lay down the fart tax.

In 2003, the Helen Clark government tried to introduce the fart tax, but this attempt was defeated by Kiwi farmers who protested for two reasons. 

At that moment, they were concerned that the fart tax would cause high administrative costs, making the farmer experience economic suffering.

They also argued against the imbalanced nature of the policy as other sources that create methane gas, like landfills, were not charged.

However, the current New Zealand government wants to stick with fart taxes.

And this stubbornness of the government is based on scientific reasoning.  

Scientists say livestock produces methane gas and nitrous oxide from feeding on grass.

Additionally,  methane gas lingers less than carbon dioxide and does not linger as long in the atmosphere but affects global warming.

Scientists state that methane gas is the cause of at least 30 percent of global warming and the earth's high temperatures.

Pressures from the international community is also another reason  that is making the New Zealand government stick to the fart tax.

 On the eve of Cop 26, New Zealand made a promise as part of the Paris Agreement to lower global warming to 1.5C.  

And New Zealand has also set their domestic target to reduce at least 10% below 2017 biogenic methane levels by 2030 under their domestic legislation. 

As part of this action plan, on the 21st of December 2022, the Ministry of Environment released 'The Section 215 report' which detailed how to tax livestock's fart. 

Highlights of this report can be summarized in three points. 

Firstly, only GST-registered owners, who meet the emission thresholds, equivalent to ~ 200 tonnes of Co2-e per year, must report and pay fart tax.

 Secondly, Biogenic methane and nitrous oxide will be charged differently and separately.

Lastly, the proposed price pathway for biogenic methane and nitrous oxide would continue for five years, with a review after three years. 

The Section 215 report has been reached to Cabinet for approval in early 2023, but the Cabinet could ask for changes. 

Even if approved, the parliamentary law-making process remains. 

It is necessary to pay attention to what results the farmers' protests will bring.

Steven Seo / Grade 5
Cheongna Dalton School