Mr. Smith is the owner of a gasoline taxi car. In this case collection of the tax take place when a tanker with oil will arrive the car. Then the crude oil will go to the refinery, where it will be processed into gasoline. Before the gasoline reaches the gas station, it will pass through the hands of many brokers. Every one of them will issue an invoice where the CAT will be counted. In the end, Mr. Smith poured gasoline into the tank, and now as the final recipient, he is entitled to a CAT tax refund. As taxable fuel is expensive so Mr. Johnes is thinking of buying a hybrid car. Normally, such a car is more expensive to buy than a car with a classic drive, but the situation will change after entering the CAT introduction. When Mr. Johnes buys a hybrid car he will be entitled to a CAT tax refund each time he refuels. When the total value of returned tax will equal to the value of the batteries and electric engine Mr. Jones will be allowed to use the CAT subvention for other purposes. In this way, everybody will take advantage of it.
1.) Mr. Johnes has a new hybrid car which will be cheaper in exploitation.
2.) The environment gains because of a new car Mr. Johnes emits less CO2.