Indirect tax impact on global supply chains

Indirect tax impact on global supply chains 

The fragility of global supply chains has been pushed into the spotlight following the interruptions of COVID-19, tariff wars and geopolitical tensions. This has resulted in companies wanting to evaluate their supply chains in order to reduce costs, alleviate disruptions, meet their carbon emission targets to curb the impacts of climate change.

Coupled with the rising cost of inflation and the looming potential of a global recession, now is the time for companies to better understand the Indirect Tax costs embedded in their supply chains as governments around the world move to initiate taxes to penalise goods and services with a high carbon footprint.

Starting in October 2023, carbon emissions on certain goods imported into the EU under categories including iron and steel, cement, electricity, fertilizers, aluminum, and hydrogen will incur a carbon tax. Australia and some of our other significant trading partners – like Japan and the UK, aren’t far behind in an effort to hold countries failing to meet their climate and environmental obligations accountable.

Watch our webinar from our Specialist Tax Partner, Richard Nutt and National Managing Partner for ESG, Andrew Rigele as they break down the impacts the Carbon Pricing Mechanism tariffs will have on global supply chains and do an assessment of ESG as a business risk, and the impact on an organisation’s business model.