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Question 1 Fuel duty and the tax on employees' company car benefit are both examples of taxes with the aim of reducing emissions. a) Explain

Question 1 Fuel duty and the tax on employees' company car benefit are both examples of taxes with the aim of reducing emissions. a) Explain how these taxes operate and discuss which you think is the most effective at reducing emissions. 12marks b) Appraise both these taxes with reference to Adam Smith's canon of equity. 13marks (Total marks for question1: 25 marks)

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