Planet Impact Tax (PIT) is a speculative tax system proposed to replace Value Added Tax (VAT). The tax rates would be determined using supply chain data, including carbon emissions, pollution, labour welfare, biodiversity loss and energy consumption. They would be calculated using artificial intelligence and published annually.
Higher welfare, environmentally friendly products would have a lower tax; products that are environmentally and socially damaging would have a higher tax.
The price adjustment at the point of purchase would nudge consumer behaviour towards more planet-friendly products choices, creating a positive disruption throughout the supply chain globally in a systematic shift towards a circular, sustainable economy.